AKBA: Work underway to bring new institutional investors to Azerbaijan

Work is being carried out in Azerbaijan to introduce new types of institutional investors to the market, Orkhan Baghirov, Chairman of the Board of Directors of the Azerbaijan Capital Markets Association (AKBA) Public Union, told Report.

"There are already enough institutional investors in the capital markets - banks, insurance companies, and so on. At present, we are working to bring new types of institutional investors to the market. We are talking about investment funds. The relevant law also needs updating. The Central Bank of Azerbaijan is working in this direction. I believe that soon we will see the establishment of investment funds and, accordingly, the launch of collective investment schemes in our country," he noted.

Baghirov added that the application of blockchain and tokenized assets in Azerbaijan could enhance confidence and efficiency in the market: "The main feature of blockchain technologies is that transactions are carried out without the need for centralization. But the bigger question is how ready our market and society are for its application. Because this is another psychological barrier for people. Today, our citizens are still getting used to the transition of shares and bonds from paper form to electronic form. Yet we are already talking about moving from electronic form to blockchain platforms. In this sense, our society needs more awareness and readiness."