IRAN NEWS ECONOMIC DESK

TEHRAN – New Head of Iran’s Securities and Exchange Organization (SEO) in his first press conference yesterday said SEO is the custodian of transparency in the stock market and it should increase its responses to those who are involved in the stock market and this can enhance transparency in the stock market trades.

Hassan Qalibaf Asl said some of recent developments and boom in the capital market are indebted to the efforts of  media which have helped the stock market, in cooperation with active bodies in the Bourse, to move towards more development.

He further said that one of the issues which has been seriously considered by the SEO is to avoid parallel work in the capital market and the SEO should do its best to monitor all different bodies in order to remove parallel work.

Qalibaf Asl added that the main task of SEO is to supervise and all executive affairs should be handed over to the related bodies. He said currently SEO has left the admission board and it has handed over all executive affairs to the Bourse and Farabourse.

He added that what is stipulated in the law is that SEO should act as a supervisory body, and determining the border between execution, and supervision is of the major acts of SEO.

Qalibaf Asl noted that boosting international position of Iran’s capital market is of the major goals of the organization, reiterating that boosting the financial knowledge of the public is of the special strategies of the supervisory body.

He also said improving the health of market system is on the agenda and the organization is resolved to boost transparency in operations as well as reforming some regulations and reducing the risks in trade.

The CEO of the organization added that in the first quarter of the year, some 50,000b tomans of liquidity has entered the capital market while last year, the total liquidity entering the market was 30,000b.

Qalibaf Asl added that the organization is working to facilitate entries of companies into the capital market through offering tax incentive.

He also said since 15 years ago, three major missions have been handed over to the national capital market, adding that offering shares of state-run companies, liberating justice shares and boosting the role of Bourse in financing the generative sector of economy were those missions, and completing them is of the major tasks of this supervisory body of the capital market.

Qalibaf Asl said so far 9.5m people registered in SEJAM portal and they have received trade codes while the number of those who had trade codes was 820,000 people last year.

He once again reiterated that the organization will confront with anybody who tries to create disorder and chaos in the capital market, reiterating that all financial reports of the listed companies in the stock market are transparent and authentic and it will minimize any information-rent in the capital market.

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The decision signed by Vice President Eshaq Jahangiri allowed government departments and municipalities across Iran to issue up to 180 trillion rials of Sukuk, the Islamic sharia-compliant bonds, for the purpose of finishing infrastructure projects until the end of the current calendar year on March 20, 2021, Press TV reported.

Iran’s Interior Ministry would oversee the issuance of around 80 trillion rials (nearly $500 million) worth of securities by municipalities and their subsidiary organizations, said the decree signed by Jahangiri.

It added ministries of oil, industries, and energy would be allowed to issue 35 trillion rials (nearly $218 million) worth of Sukuk bonds for investment in major projects. Oil and gas projects would be prioritized in the plan and the Oil Ministry can issue the securities in foreign currencies, it said.

Government companies, which also include major oil and gas firms operating energy facilities, will be allowed to issue 65 trillion rials (over $400 million) of Sukuk bonds for projects that are justified from “technical, economic, financial and environmental” points of view, said the decree.

Issuing Sukuk bonds has become a popular tool for attracting investments in Iran, especially at a time of a major boom in trade in the country’s stock markets.

Investors prefer the government-backed bonds mainly because of their high yields and the fact that they are concentrated in established industries like energy and mining.

Experts believe the issuance of Sukuk bonds can be key to efforts by the government of Iran to offset economic losses suffered from a series of US sanctions imposed on the country’s direct sale of oil.

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IRAN NEWS ECONOMIC DESK

He then pointed to the process of forming a jurisprudence committee in Iran’s capital market, adding that the committee started its job in 2007 and since then, it is monitoring all activities of Iran’s stock exchanges, and financial tools without the approval of the committee are not allowed to be used. He went on to say that Securities Exchange Organization does its best to take into consideration all jurisprudence issues in the capital market.

Mohammadi reiterated that all process of a trade from the start to its end are monitored by the committee and in case something vague and ambiguous happens in the trade, all refer to the decisions of the committee.

He reiterated all diverse financial tools in Iran’s capital market like sukuk and other bonds are based on sharia and they have been adjusted with other financial tools in the world.

Mohammadi went on to say that the number of joint funds for investment has reached 211 and stocks of more than 600 companies are traded in the stock market.

Meanwhile he reiterated that the national capital market is in favorable condition and the market has enjoyed  a good stability in recent months.

He added that some forums and meetings like the current one can help those who are involved in the capital markets in the Islamic countries invest in Iran.

On the joint financial markets among countries, Mohammadi said issue of joint market is actually pursued through negotiations between Iran with other stock markets like Istanbul and those companies which are active in Iran’s stock market are shown at Istanbul Stock Market and those companies which are active in Istanbul stock market are shown in Iran’s stock market.

The two-day forum which is underway in Tehran will wrap up in Tehran today.  28 foreign guests from 15 countries have attended the forum. Guests from Italy, Spain, Qatar and Morocco have participated in the forum for the first time. This year’s event is aimed at developing the Islamic financial tools.

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