Foreigners Interested in Investing in TSE: Official
Deputy Economy Minister and head of Iran Investments, Technical and Economic Assistance Organization Mohammad Khazai said under negotiations held so far proposals to the tune of rls 25 billion have been presented to TSE. "These proposals have been partially made by Arab countries and some others by Iranian expatriates living in Spain and Britain which are being evaluated."
The TSE officials are of the opinion that some restriction should be applied to foreign investments in the proposed executive bylaws pertaining to amount of profit repatriation and level of participation in the exchange, Khazai underlined.
He said the ceiling as another restriction is necessary due to TSE unpreparedness to absorb a huge amount of capital investment.
A member of the Majlis Planning, Budget and Audit Commission said here recently that foreign investors are now allowed to transact in the Tehran Stock Exchange.
Ahmad Ramezanpour-Nargesi said that foreign investors are bound by TSE rules on purchase and sales of shares.
The purchase of companies active in the TSE whose stocks exceed the domestic demand is not the aim of new policies, 'but, the policies are drawn up to encourage the increase of private companies' capital and expand participation by foreign investors in the stock market'.
He further said that suitable ground should be prepared to induce foreign investors to commit capital in market. Higher capital infusion in the market will be a boom to domestic production and investments, he underlined.
The investments are now made by individual investors and corporations, Nargesi said adding, "The new laws stipulate that foreign investors could purchase between 10-15 percent of the shares of the active companies in the TSE.
"Acquisition of shares above 15 percent of total outstanding shares is tantamount to direct investments in local firms by foreign investors," he said.