Iranian stock market holds capacity to become international: MP

July 26, 2020 - 15:31

TEHRAN – The Iranian stock market has good potentials to be turned into a large international market, a member of the industries and mines committee of the parliament has said.

However, the internationalization of the Iranian stock market requires several factors, mainly money transfer conveniently and safely, MP Lotfollah Siyahkali explained.

"Iran's bourse can become international but it is necessary to be careful about the inbound financial resources," he said, adding that transactions at the stock market should be transparent.

If companies and enterprises announce their capitals and assets incorrectly, this will cause damage to the stock market and bubble as well, he stressed.

Although the main index of Tehran Stock Exchange grew more than 200 percent over the past Iranian calendar year (March 2019-March 2020), experts refer to it as a "financial bubble" and warn about this situation. They argue that a rising value of shares at the time of negative economic growth is not normal. So decreasing value of shares in the near future will have serious consequences.

The official called “security” an important factor for domestic and foreign investors and emphasized that people all around the world invest in a market that is secure and the security depends on the fact that the products which are manufactured by the companies listed on the market should meet demands of customers.

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