The initial offering price of shares in state-owned companies is determined by the companies themselves. The companies must follow State Property Committee instructions to set this price. When fixed assets under construction are sold to foreign investors, the initial price of these assets is determined on the basis of their international market value. How Foreign Investors Acquire Privatized Property Foreign investors may purchase privatized property either during its initial privatization or after it is privatized, i.e. on a secondary market. Only the State Property Committee has authority to sell state-owned property to foreign investors.
Options are bearer securities that can remain in circulation for three years.
Options are used when foreign investors register shares with the National Depository Center in Baku. Once they are surrendered to the Center, the Options are voided. Foreign investors can sell Options to other foreign investors on a secondary market. In this case, the purchaser must register the Options. While the State Property Committee had the power to register secondary trading of Options, the State Securities Committee may now have this authority by implication, because it has been authorized to issue Options and by virtue of its broad regulatory power over securities.