• Due to instrument specifications, securities on BSE are traded on EQUITY and BOND markets. Each market trades securities that belong to the same instrument group issued by private companies, government bodies and other establishments. However, not all the issuers are the same for their organizational form, management mechanism, number of shareholders, market turnover, credit rating, financial situation and other aspects.
• For this reason, markets have been divided into segments for their listing levels – PRIMARY, STANDARD and ALTERNATIVE market segments.
• Listing requirement on BSE change in accordance with securities market segment.
• This means that there are higher requirements for PRIMARY MARKET SEGMENT, medium requirements for STANDARD MARKET SEGMENT and lower requirements for ALTERNATIVE MARKET SEGMENT.
Before securities can be listed they have to be registered by the state, receive uncertification status for keeping in depository and records shall be kept in the registry.
Issuers in this market are required to apply advanced organizational, financial, disclosure and management standards as well as profitability and ensuring turnover volume in free equity market.
Primary market trades government securities, as well as the securities of the issuers who demonstrate high operational and financial indicators that apply advanced organizational, financial, disclosure and management standards.
Listing requirements here are less stringent. Issuers may draft their financial reports in line with local accountancy standards. Total amount of an issuer’s charter capital should be minimum 500.000 manats. Minimum volume of free turnover shall be 5% or 125.000 manats. Free turnover shall be divided among minimum 20 shareholders, however, like in primary market, one shareholder cannot own more than 5% of shares.
Standard market trades the securities of the issuers who demonstrate medium operational and financial indicators but apply advanced organizational, financial, disclosure and management standards.
Shares and bonds not meeting the requirements of primary or standard markets can be listed on alternative market segment. The main aim of the alternative market segment is to enable the trading of securities on BSE of issuers that do not meet the requirements of Primary and Standard market segments.
Alternative market trades securities of small issuers that meet general organizational, financial, disclosure norms.