‘Raising capital through stock market to boost employment, production’

August 10, 2021 - 13:43

TEHRAN – Head of Iran's Securities and Exchange Organization (SEO) has said that the country’s production units and companies can boost their employment and production by raising capital through the stock market.

“When people's resources are directed into the capital market, enterprises and companies listed on the stock exchange can have stronger financing from this market, and consequently have more investment and increases production and employment,” Mohammad-Ali Dehqan Dehnavi told IRNA on Monday.

Referring to the government's performance in directing people's capital to the stock market, Dehnavi said: “SEO believes the government has a great role to play in the country's economy, the government is the macro policy-maker and the main regulator of the country's economy, therefore in countries like Iran where the government is directly involved in the economic decisions, it should also be present in the production sector. “

Dehqan Dehnavi further emphasized that the government's duty is to invite people into the capital market, adding: "The stock market is a platform that provides financing for production.”

According to the official, his organization has considered several incentive programs for supporting the shareholders and for protecting the newly joined members.

Following the supportive measures taken by the government, the Iranian stock market has been gradually getting back on track and experts believe that the market is regaining people’s trust.

Analysts and scholars believe that trades in the Iranian stock market will be much better and more reasonable in the second half of the current Iranian calendar year (started on March 21) compared to the first half of the year.

According to them, reaching a possible agreement on the nuclear deal will have a positive impact on the capital market and pave the way for significant growth in the market.

“Reaching such an agreement will result in the reduction of the costs in major companies and will certainly have a positive impact on the market as a whole, especially on the shares of export-oriented companies,” stock market Expert Mostafa Safari said in late July.

“Reducing costs will eventually increase the profits of corporate stocks; Therefore, we hope that the lifting of sanctions will be implemented as soon as possible so that we can see the positive impact of this event in the market,” the analyst added.

EF/MA

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