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

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.