Financial Sector in Afghanistan: Regulatory Challenges in Financial Sector of Afghanistan

Financial Sector in Afghanistan: Regulatory Challenges in Financial Sector of Afghanistan

Gunit Singh Marwah (Gujarat National Law University, India) and Vishal Ladhani (Gujarat National Law University, India)
Copyright: © 2016 |Pages: 39
DOI: 10.4018/978-1-5225-0004-9.ch011
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Abstract

In the following chapter, the authors have proposed to throw light on the scheme of financial sector prevalent in Afghanistan. The purpose of this chapter is to give the readers a brief insight on the financial background, policies and regulations in existence in Afghanistan. Adding upon, the authors have made an attempt to suggest a few recommendations to bring the Afghanistan's economy at par with the economy of other developing nations of the world. The authors received substantial amount of assistance from the top-managerial officials of Bakhtar Bank of Afghanistan and from a scholar named Abdul Samad Katawazy. The authors would like to thank AREU, AISA and ACCI for providing access to their published surveys and reports. This particular chapter as a whole focuses on ten basic factors which have the ability to make or break Afghanistan's financial structure and therefore aims to provide an insight into the same.
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Stock Exchange Of Afghanistan

Stock exchange, also called the stock market or share market, is one of the most important constituent of capital market. It is an organized market for the purchase and sale of industrial and financial security. It’s basically an investment intermediately which facilitates economic and industrial development of a country. It provides a platform for convenient and secured transactions for different securities as per certain well defined rules and regulations to prevent excessive speculation, scams and other undesirable and anti-social activities.

Stock exchange in Afghanistan also known as the Afghanistan Stock Exchange (ASE), is basically a private equity exchange with regards to initial listing, investing in private placements or secondary trading of securities in admitted companies. As far as naming of shares is concerned, private equity ownership shares are ‘named’ as opposed to public shares, keeping a complete track of the title of ownership in relation to shares on offer. A complete digital registry is maintained for keeping all the issued shares of listed companies securitized. The digital registry, Central Business Registry of Afghanistan performs a ‘custodian role’ of traditional exchanges and is supervised by the Kabul Chamber of Commerce and Industries. Afghanistan stock exchange has initiated efforts to get itself licensed from the financial market regulator of Afghanistan, i.e. Da Afghanistan Bank.

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