SEO passes new regulations to facilitate transactions in stock market

February 6, 2021 - 12:35

TEHRAN - Iran's Securities and Exchange Organization (SEO) has passed new regulations in order to facilitate and adjust transactions in the capital market, the SEO Head Mohammad-Ali Dehqan Dehnavi announced.

As reported by ILNA, the mentioned regulations and decisions were approved in a board meeting on Friday.

According to Dehnavi, first, in order to support the capital market and strengthen the demand side, the Capital Market Development Fund was allowed to finance up to 30 trillion rials (about $714.2 million) through the issuance of subordinated securities.

Secondly, it was also decided to increase the stock price adjustment coefficient and the shares’ pre-emptive rights in credit transactions from 45 percent to 60 percent, the official explained.

According to the third enactment, it was decided to review the executive instructions for the purchase, maintenance, and offering of treasury shares, with considerations for facilitating the purchase and maintenance by issuers.

The issuance of credit cards to holders of “Justice Shares” by banks was another decision made in this meeting which will be operational during the coming week.

“Negotiations to extend these services to other shareholders, especially small shareholders, should also be on the agenda,” he said.

It was also decided to review the preferred stock guidelines in such a way that it would be possible to grant preferred stock to the employees of the subsidiaries or the parent company or the entire financial group in addition to the direct employees of certain companies.

The SEO head further stressed that in order to promote transparency and provide up-to-date information; the revaluation of companies' assets should be accelerated and facilitated.

Also in this meeting, other important issues like creating peace in the market, participation, and responsibility of external and internal market elements, improving the level of government support for the market, and fulfilling the remaining obligations of the National Development Fund (NDF) were discussed and important proposals were formulated, the official added.

EF/MA

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