The central depository is a non-profit legal entity established by the financial market supervisory authority, which together with its members - the investment companies and the investment fund’s depositories, constitutes the depository system and manages it.
Functions of the central depository are:
1. Safekeeping and keeping records of securities;
2. Keeping records of accounts of securities holders;
3. Arranging and managing an electronic system for securities and their holders;
4. Maintaining a registry of securities holders;
5. Keeping records of nominal holders’ accounts;
6. Registering encumbrances of securities;
7. Providing services as related to above functions to its members, issuers, stock exchanges, clearing houses;
8. Providing account statements and transaction reports at customer’s request;
9. Other functions defined by the Law of the Republic of Azerbaijan “On Investment Funds”.
In accordance with the Law of the Republic of Azerbaijan “On Securities Market”, the central depository may perform clearing activity without getting the appropriate license. The National Depository Center acts as a central depository in the Republic of Azerbaijan.