By Mahnaz Abdi

Foreign investors’ presence increasing in Iranian capital market: SEO head

December 18, 2017 - 20:47

TEHRAN- Presence of foreign investors has been increasing in Iran’s capital market especially after the implementation of Iran’s nuclear deal in January 2016, Head of Iran’s Securities and Exchange Organization (SEO) Shapour Mohammadi told the Tehran Times in a press conference on Monday.

Foreign investors’ number has risen in both Iran Energy Exchange (IRENEX) and Tehran Stock Exchange (TSE), the official added, although he mentioned the problems with money transfer as the main limitation for the foreigners’ presence in Iran’s capital market.

Asked about SEO’s measures for attraction of foreign investors to the Iranian capital market and also its plans in this due, Mohammadi said: “We are following up the issue of our membership in IOSCO [International Organization of Securities Commissions] and also we are following up the international standards that we should prove that we are complying with.”

“The issue of custodian account is also being followed up based on an agreement we reached with Bank Mellat four-five months ago and the foreigners can benefit from such account in Iran. Also Iran Financial Center has designed a mobile application in English language that includes our capital market data which they can see all around the world”, he announced and said: “We should make data vending deals with the world sites so that we can offer data and information about our capital market to the foreigners.”
SEO has had different MOUs with foreign organizations and companies which have led to noticeable increase in the foreigners’ contribution to Iran’s capital market; the head of organization underlined and put the value of foreign investment in Iran’s capital market at about 20 trillion rials (about $478.812 million) for the moment.

Measures taken over 1.5 years

Addressing the press conference, Mohammadi elaborated on 25 major measures his organization has taken over the past 18 months.

He mentioned updating the trade system, which had not been updated for more than a decade, as one of the main measures and said: “We have been conducting trades in the updated system since Saturday.”

He referred to another measures as establishment of a comprehensive system of supervising capital market within the past eight months, reducing the interest rate of bonds, promoting status of agricultural products in Iran Mercantile Exchange, initial offering through book building, and modifying the instructions of closing and opening indicators.

Elsewhere in his remarks, Mohammadi highlighted the establishment of algorithmic and high-frequency trading as another remarkable measure of his organization.

IOSCO’s membership in final stages of investigation

The head of Securities and Exchange Organization further announced that Iran’s membership in IOSCO is in the final stages of investigation and we hope that it will be finalized soon.

Mohammadi further advised the shareholders to take five main points into consideration.

He asked them to notice basic factors including profit making, financial statement and company’s outlook in their trades, and also pay attention to the features and risks of each industry. 

He also suggested them to buy a basket of shares instead of the shares of a single company, benefit from faithful consultants and adopt long-term analysis and strategy.