Seydi: We Must Have a Balanced, Liquid, and Trustworthy Market

TEHRAN (Iran News) In a meeting held on Saturday in Tehran, attended by major market issuers, board members of the Securities and Exchange Organization, and CEOs of the Tehran Stock Exchange and the Over-the-Counter Market, Seydi expressed condolences for the mourning period of Muharram and paid tribute to martyrs, including commanders, scholars, innocent citizens, and market colleagues. He prayed that the martyrs be united with Imam Hussain (AS) and that the nation continue their path.

Seydi addressed the recent closure of the stock market for several days, noting that the organization has predefined emergency protocols, but deciding whether to open or close the market was highly challenging. “Our primary concern was to preserve market liquidity and prevent a sharp decline in asset values. Ultimately, given the emergency circumstances, a decision was made to suspend trading,” he explained.

Regarding the process of reopening the stock exchange, Seydi outlined that, a letter was sent to the Minister of Economy detailing three scenarios. The first scenario proposed reopening the market under the pre-closure conditions, with certain support measures such as protecting the market, preventing legal entities from selling stocks, and securing credit lines from stabilization and development funds. The second scenario involved reopening with trading of gold funds in the first week and stocks in the following week. The third scenario considered keeping the market closed if the first two conditions were not met.

Seydi added that the letter was also circulated among members of the High Council of the Stock Exchange, and ultimately, everyone supported the first scenario. While some indicators for declaring an emergency had not yet been fully realized and a formal ceasefire had not been announced, certain signs—such as banks returning to normal operations, resumption of flights in eastern regions, and the lifting of remote work—indicated a relative easing of the crisis. Based on this, the decision was made for the market to reopen from today.

He emphasized that negotiations had taken place to support the market, and significant measures were promised. While the index and returns remain important, the current focus must be on market liquidity. “We must prevent stocks or subsidiaries from being placed on sale queues. Even if a stock constitutes a small part of your portfolio, it must be protected,” he said.

He underlined that decisions in the capital market are reactive to circumstances and that the behavior of legal entities and managers is closely monitored. “The performance today shapes the future of the market. Investor trust depends on how we respond to crises,” Seydi noted.

He further stated that if necessary, financial resources should be allocated to support certain stocks. “This is not just about support but also about playing a responsible and professional role in the market,” he added.

Seydi concluded that maintaining investor confidence is the key to the stock market’s success in the coming weeks. If shareholders see that managers act appropriately, they will support the market. “All of us must strive to have a balanced, liquid, and trustworthy market because the vitality of the capital market benefits everyone,” he said.

He also highlighted the importance of gradually lifting restrictions on legal shareholdings and stressed that measures to support the market should be implemented carefully. “Support must be phased, and we need to work towards a market that is stable and liquid,” Saidi emphasized.