TEHRAN- TEDPIX, the main index of the Tehran Stock Exchange (TSE), fell 58,870 points to 3.108 million on Wednesday, which is the fifth day of the Iranian calendar week.

TSE is one of the four Iranian stock exchanges, and the most important one. The other three ones are Iran Mercantile Exchange (IME), Iran Energy Exchange (IRENEX), and Iran’s over-the-counter (OTC) market, known as Iran Fara Bourse (IFB).

The head of the Securities and Exchange Organization (SEO) has said that the capital market’s share in the national financing system is going to increase to 50 percent over the next five years, positioning it as a key engine of economic activity, employment, and industrial growth.

Hojatollah Seyedi said the organization’s 14th development plan includes targeted measures to stimulate production, starting with fiscal incentives embedded in the national budget.

He outlined two additional pillars of the government’s production strategy: implementation of the Law on Supporting Production and a five-part economic development plan currently being drafted by the Planning and Budget Organization (PBO).

Seyedi said new investment funds have been created within the capital market to support production, including Murabaha bonds aimed at financing small- and medium-sized enterprises.

He said the Securities and Exchange Organization is targeting a “50-50” financing model, balancing bank loans and capital market resources, over a four- to five-year horizon. “Initial public offerings in project-based companies have already begun, and infrastructure for Murabaha bond issuance is in place,” he said, noting a surge in applications from producers seeking bond issuance licenses.

In late March, the official outlined the five major plans for enhancing efficiency and transparency in the capital market in the current Iranian calendar year, which began on March 21.

Seyedi outlined five initiatives for the capital market this year, which include expanding the market through initial public offerings (IPOs), especially company-project listings, and increasing the capital of listed companies.

He expressed hope that the number of companies in the capital market would exceed 1,000 this year (currently there are over 700 companies).

Entrepreneurs and private companies are encouraged to take advantage of capital market opportunities, he emphasized.

He continued by explaining the second initiative: enhancing transparency, efficiency, and timely information dissemination in the capital market.

The third program focuses on improving corporate governance systems to ensure listed companies are better managed, achieving higher performance and increased profitability, all aligned with supporting production, the official added.

Seyedi announced two other plans: one to strengthen structures and the other to upgrade and rebuild the capital market's information technology system.

Regarding the capital market's value this year, he clarified that it will ultimately depend on market participants and remains unpredictable. However, efforts will focus on increasing transparency, liquidity, and efficiency to grow and improve the market compared to last year.

He emphasized the importance of shareholder rights, stating, "Shareholders must feel their rights are respected and supported", adding that safeguarding shareholders' rights depends on enhancing the efficiency of listed companies.

The SEO head further stressed fair transactions, preventing asymmetry in the dissemination of company information, and ensuring shareholders have access to company performance data to make informed decisions, such as whether to hold or sell their shares.

MA