CBI, SEO to cooperate in launching money market funds

March 16, 2022 - 13:21

TEHRAN- The Central Bank of Iran (CBI) plans to collaborate with the country’s Securities and Exchange Organization (SEO) to launch money market mutual funds in the next Iranian calendar year (starts on March 21), the bank’s governor announced.

“One of the plans of the central bank and the securities and exchange organization for the next year is to launch money market funds that [currently] exist in the world but not in Iran, so we hope to create them in the next year,” IRNA quoted Ali Saleh-Abadi as saying on Tuesday.

Saleh-Abadi made the remarks at the unveiling ceremony of SEO’s new capital market assessment and monitoring system in Tehran.

“Due to the development of the capital market, the increase in the volume of stock transactions, and the emergence of new instruments, this market also needs more monitoring and observation,” the official said, underlining the significant role of the mentioned system.

Emphasizing that such instruments will help develop and create a healthy business environment in the capital market, Saleh-Abadi said: “Article 2 of the securities market law states that creating a transparent, fair and efficient market is one of the major duties of the Securities and Exchange Organization, so this type of oversight and monitoring can help ensure fairness, transparency of transactions and appropriate access to market information.”

The CBI governor also referred to the plans for establishing interactions between parallel markets and added: "The joint committee of Securities and Exchange Organization and Central Bank of Iran has been formed and several meetings have also been held, these meetings will be aimed at establishing the necessary coordination between the two markets (money and capital markets)."

Capital market to have a better condition next year

Following the remarks of the SEO head, Chairman of the Economic Committee of the Iranian Parliament Mohammadreza Pour-Ebrahimi said on Wednesday that the country’s stock market is expected to have a better condition in the next Iranian calendar year.

“According to nuclear deal negotiations and new developments abroad, new windows are expected to be opened for the country's economy and, most importantly, for the capital market,” Pour-Ebrahimi said.

According to the official, the trend of the stock exchange trading in the next year is expected to be upward.

The parliament and the government are taking serious measures to solve the problems of the capital market and this can have positive consequences in the long run, he stressed.

EF/MA

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