Mohammad-Ali Dehqan Dehnavi made the remarks in a ceremony for signing a memorandum of understanding on cooperation between SEO and the Ministry of Industry, Mining and Trade aimed at financing the production activities through the micro capitals of the people, with emphasis on strengthening the country’s production resources as a capital market priority.

The official said: “Efforts have been made to use all the capacities and facilities of the capital market to boost production, because we believe that the final benefit of this support will return to the capital market.”

New methods of financing should be introduced and new ideas such as crowdfunding should be considered alongside the previous methods, he added.

Elaborating on crowdfunding, the SEO head said that it is a platform and base for connecting micro-savers to small and medium-sized producers, which in fact can be a manifestation of people’s inclusive participation in the economy.

At the end, the official emphasized, “With the special support of the Ministry of Industry, Mining, and Trade from the production companies listed on the stock exchange, we will undoubtedly witness the further improvement of the country’s industrial development indicators.”

Materializing motto of year

Making these remarks by the head of Securities and Exchange Organization clearly indicates that this organization is determined to support domestic production in the present Iranian calendar year (began on March 21), which is named the year of “Production: support and the elimination of obstacles”.

In fact, the SEO considers itself a serious supporter of this motto, as the two keywords of “Production” and “Capital” together consist the base for the national development, and each step to facilitate production will be resulted in expediting the country’s movement toward development.

According to the organization’s head, the capital market, with its inherent potential in the field of financial exchanges, organizing parallel markets, and creating balance in the economic system, pursues the mission of supporting production; and in spite of all domestic restrictions and international sanctions, prevents production stop through leading the liquidity toward productive enterprises.

“Without the safe “supports”, production is usually slow, so the capital market seeks to provide a safe and secure environment for those active in the production sector by constantly injecting liquidity and designing support institutions such as financing companies and planning to avoid wasting resources in unproductive sectors”, the official has stated.

SEO’s main strategies to support production

The SEO head has also expounded upon this organization’s main strategies to support the motto of this year, which is supporting production and eliminating related obstacles, as follows:

Supporting knowledge-based companies along with strengthening the traditional market is one of the tasks that the slogan of the year implies, and any move that shortens the path of producers and consumers depends on the strong support of related organizations, which should have more overlap this year.

Removing obstacles in the path of development is one of the inherent tasks of organizations, and in this regard, the SEO will put the acceleration and simplification of the licensing process at the top of its policies.

Encouraging investors to have a wider presence in the capital market is possible only by removing unnecessary regulations and administrative barriers.

The capital market will emerge as one of the most serious supporters of this year’s motto with strong strategy, identification of obstacles, and offering solutions and operational action to eliminate them.

The SEO hopes to materialize this motto through adhering to the principles of strengthening professional supervision, continuing to improve public confidence, and trying to achieve the goal of “economic development” by relying on the strength of all capital market beneficiaries, including shareholders, investors, financial institutions, publishers, experts and media.

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The details of the mentioned programs dubbed “capital market policy package to support production and eliminate obstacles” and “the plan to improve the position and performance of the capital market” were presented in a meeting between Dehqan Dehnavi and the members of the SEO Advisory Council.

“The capital market has witnessed great changes in the past two years and has grown significantly in terms of size, the volume of activity, and presence of people. These rapid developments have changed some of the equations [in the market],” Dehnavi said following the mentioned meeting.

He emphasized that the structure and facilities of the stock market should be reviewed and modified based on the size and volume of today’s market and the issues it faces.

“New capacities should be created not only in the structure of the stock exchange organization [SEO] but also in all sectors of the market in order to adequately respond to the existing needs,” the official said.

According to the official, the first of the above-mentioned programs, namely “capital market policy package to support production and eliminate obstacles” has been prepared by the SEO Research Center to tackle the issues that the stock market is facing in supporting domestic production.

“It provides solutions to more than 40 to 50 capital market challenges and issues in this regard,” he noted.

In the second program, the necessity and ways of improving the position and performance of the capital market are discussed and the raised issues and problems will be addressed through specialized working groups with the presence of experts, analysts, capital market activists and managers from different sectors.

Unprecedented fluctuations in the Iranian stock market over the past few months have raised concerns among shareholders, experts, and scholars leading them to call for the government to increase support for the market.

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Back in early April, the Government Economic Coordination Headquarters, in its 216th meeting, approved some new directives for regulating the stock market which has been witnessing unprecedented fluctuations over the past few months.

Underlining the significance of the mentioned directives, Mohammad-Ali Dehqan Dehnavi, the head of Iran’s Securities and Exchange Organization (SEO), said: “This [approving the new regulations] shows the support of the government’s three branches for the stock market and can calm the market and the shareholders and help restore its balance.”

Following the meeting of the Government Economic Coordination Headquarters, last week Dehqan Dehnavi unveiled the government’s new directive package dubbed “7+3”. This package includes 10 new directives of which, according to the official, three are already being implemented and the rest will be implemented soon.

The new directives include allocation of one percent of the National Development Fund (NDF) resources to the stock market stabilization fund, lifting the ban on capital market financial institutions to use banking facilities, and granting five-year residency to foreign investors who buy shares in the Iranian capital market.

The above-mentioned directives have been implemented in the capital market as of April 27th, according to Dehqan Dehnavi.

In the 216th meeting of the Government Economic Coordination Headquarters, President Hassan Rouhani presented a report on the government’s supportive measures for the stock market, saying: “This year, which has been named the year of supporting production and eliminating obstacles, the government is trying to remove obstacles to the growth of the capital market and will try to encourage people to enter this market with the necessary training and arrangements.”

The government supports the capital market to direct liquidity into productive sectors and, in general, to de-centralize the economy and to help economic transparency, he said, adding that the government will continue to offer shares in state-owned enterprises and institutions in the capital market.

In its latest supportive decision, the government has approved to inject 240 trillion rials (about $5.7 billion) of resources into the market in the form of bonds which most experts evaluate as a positive measure. It is said that these funds are gradually injected into the market and help increase the liquidity until new resources enter the market.

It has been said that these resources that enter the market will also motivate shareholders, and therefore real investors will be encouraged to invest in the market.

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