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Azerbaijan is exploring opportunities for domestic companies to list their shares on international stock exchanges alongside the local market, potentially opening new channels for attracting foreign investment and expanding access to global capital.

The initiative was discussed during an October 7 meeting between representatives of the Baku Stock Exchange (BSE) and a delegation from TheCityUK, an organisation representing the United Kingdom's financial and professional services industry.

The discussions focused on the potential introduction of a dual-listing mechanism that would allow Azerbaijani companies to trade their shares simultaneously on the Baku Stock Exchange and foreign exchanges.

Participants examined the legislative requirements, technical infrastructure and regulatory barriers that would need to be addressed before such a mechanism could be implemented.

The visiting delegation included initial public offering (IPO) expert Chris Ennals, Oliver Wenzel, representing the international securities infrastructure provider Euroclear, and Alexander Thomas of TheCityUK.

The proposed mechanism could provide Azerbaijani companies with access to a wider pool of international investors while offering foreign institutions additional opportunities to participate in Azerbaijan's capital market.

Dual listings can also improve the international visibility of domestic companies, although their implementation requires coordination between exchanges, regulators, custodians and settlement systems operating in different jurisdictions.

TheCityUK's involvement is particularly relevant given the organisation's experience in supporting financial market development and regulatory reforms across several countries.

In Vietnam, the organisation has contributed to legislative and regulatory initiatives associated with the establishment of an international financial centre.

It has also participated in developing the legal and institutional framework for the proposed Lagos International Financial Centre in Nigeria.

In Ukraine, TheCityUK has supported initiatives aimed at helping domestic companies attract investment through cooperation with the London Stock Exchange.

Its international activities have additionally included assessing the competitiveness of the Istanbul Financial Centre in Türkiye and providing advisory support for the development of a financial centre in Oman.

India's experience could offer a particularly relevant example for Azerbaijan.

Through the UK-India Financial Partnership, in which TheCityUK participates, proposals have been developed to facilitate dual listings between Indian and London stock exchanges.

Such arrangements are intended to make it easier for companies to reach international investors without relying exclusively on their domestic securities markets.

Another important aspect of the Baku meeting was the participation of Euroclear, the Belgium-based international securities settlement and custody services provider.

Euroclear's infrastructure supports the safekeeping and settlement of securities across international markets, making it an important component of cross-border investment activity.

Improved access to international custody and settlement arrangements could help reduce operational barriers facing foreign investors interested in Azerbaijani securities.

However, technical integration would require further work on regulatory compatibility, market infrastructure and the procedures governing the settlement and custody of securities.

For Azerbaijan, the discussions come amid broader efforts to deepen the domestic capital market, diversify corporate financing and encourage companies to raise funds through securities issuance rather than relying primarily on conventional bank lending.

Greater international connectivity could also help expand the investor base for Azerbaijani issuers and increase the visibility of the Baku Stock Exchange within regional and global financial markets.

Nevertheless, the October 7 meeting represented an exploratory stage rather than the launch of a new listing arrangement.

The Baku Stock Exchange did not announce a specific dual-listing agreement, a timetable for implementation or a technical integration arrangement with Euroclear.