The purpose of the research is main problems and prospects for the development of the securities market in Azerbaijan. The essence and specific features of the securities market function are investigated for this purpose. The role of securities in improving and diversifying the structure of financial services is analyzed. The impact of the securities market on the expansion and development of the financial market of the country in modern conditions is considered. The importance of the securities market as alternative sources of financing of different spheres of the economy is studied. The need to ensure the availability of credit resources for lending to the real sector of the economy of the country is noted. Problems that slow down ensuring investment attractiveness and transparency of the competitive environment in the securities market are analyzed. The main objectives and strategic directions of securities market development in the context of global challenges and deepening of economic reforms in Azerbaijan are defined.

The methodology of the research consists of systematic and comparative analysis, scientific thoughts of various researchers on current problems and prospects of securities market development in Azerbaijan based on modern challenges.

The practical importance of the research: the results obtained and the main conclusions of the study, including the prepared proposals on current problems and prospects for the development of the securities market in Azerbaijan can be used in the implementation of targeted programs, a set of activities and the development of an activity strategy.

The results of the research consist of the formation of more progressive and effective approaches, proposals and recommendations to solve current problems and prospects for the development of the securities market in Azerbaijan in the near and long term.

The originality and scientific novelty of the research consists of disclosure of the essence of current problems and prospects of securities market development in Azerbaijan based on peculiarities of development of financial market of the country in conditions of global financial impact growth. The importance of deepening the processes of forming the appropriate infrastructure taking into account the world experience in the development of the securities market in the country is given. The main functions and role of the securities market in diversification of services on the financial market are investigated. The importance of creating alternative mechanisms in lending to the real economy by increasing the efficiency of the securities market is justified. The necessity of organization of operable and mobile mechanisms of processes control on the securities market is noted. Proposals to intensify the development of the securities market, taking into account its increasing role in financing the national economy in the context of international experience in organizing and expanding financial market services are given in the end of the article.

Keywords: securities market, securities, problems of securities market development, financial markets, alernative financial sources, lending of real economy, perspectives of securities market development.