Securities & Exchange Organization of Iran IRAN Area: 1648195 Km 2 (18 th ) Population: 76064623 (17...
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Transcript of Securities & Exchange Organization of Iran IRAN Area: 1648195 Km 2 (18 th ) Population: 76064623 (17...
INTRODUCTION TO IRAN CAPITAL MARKET
Securities & Exchange Organization of Iran
I R A N
Area: 1’648’195 Km2 (18th)
Population: 76’064’623 (17th)
Official Language: Persian
Government: Islamic Republic
Capital: Tehran
Provinces: 32
Neighbors: Turkey, Armenia,
Azerbaijan, Turkmenistan, Afghanistan,
Pakistan, Iraq, [Oman, U.A.E, Qatar,
Bahrain(Persian Gulf neighbors)]
History of Iran
Iran is one of the world’s oldest civilizations• 4000 B. C.
Medes, Achaemenids, Parthians, Sassanids, • 625 B.C – 625 A.D
Islamization of Iran
• 632 - 1501
Safavids, Afshars, Zandies, Ghajars, Pahlavis• 1501 - 1979
Islamic Revolution
• 1979 - Current
General Information Education:
Highest ratio of female to male school enrollment, 1.22 female per male student Science:
World's fastest growth rate in science and technology, 1000% increase of science and technology output in 9 years
Space Program, 9th country in the world capable of both producing and sending satellite to space from a domestically made launcher
Stem cell research and nanotechnologies, amongst the top 10 in the world. Geophysics:
Most accurate calendar in use, Iranian calendar Climate:
Among 4 countries with most diversified weather, the smallest country among them Industry:
Largest producer of Turquoise, Largest reserves of Zinc World's largest producer and exporter of handmade carpets leading manufacture industry in the Middle East, car-manufacture and transportation,
construction materials, home appliances, food and agricultural goods, pharmaceuticals, information technology, power and petrochemicals
Agriculture: Largest pistachio producer, output of 230,000 tons Largest saffron producer, 93.7% of world's total production Largest caviar producer Largest producer of berries Largest producer of stone fruits Largest producer of Berberis
Humanitarian: Host to the world's largest population of foreign refugees
Economy of IranCurrency: Iranian Rial (IRR)Gross Domestic Product (PPP) (18th):
Total: $928.9 BillionPer Capita: $12,200
Gini Index: 44.5 (medium)HDI: 0.71 (high)Growth Rate: 2.5%Stock Markets Capitalization: $135 Billion
Founding Member of UN, NAM, OIC and OPECIran ranks SECOND in the world in natural gas and oil reserves. It holds 10% of the world's proven oil reserves and 15% of its gas. It is OPEC’s second largest exporter and the world's fourth oil producer. Tourist attraction rank in the world: 10th
I ran Economic Sectors
Financial Sector
Real Sector
Foreign Sector
Financial Sector
Financial Sector
Insurance
Money Market
Capital Market
Securities & Exchange
Organization
Stock Exchange
Iran Mercantile Exchange
Financial Institution
sAssociations OTC
Market
Central Securities Depository
Public Joint Stock
Companies
Iran Capital Market History
1936
•Introduction of capital market concept in Iran
1966
•Ratification of Stock Exchange Act by Iranian Parliament
1967
•Official commencement of Tehran Stock Exchange (TSE) operations
1970s
•Economic growth and capital market expansion
Iran Capital Market History (cont’d)
1989
•Re-commencement of trades in TSE after Iran-Iraq war
1990s
•More listings and stock market growth
2005
•Introduction of new Iranian Capital Market Law
2006
•Establishment of Securities & Exchange Organization (SEO), Demutualization and incorporation of TSE (November 2006)
Law CharacteristicsSeparation of supervision and trading
operations
More regulations on primary market specially for disclosure
Possibility to introduce new Islamic financial instruments
Severe punishments for insider trading, non-disclosure and market manipulation
Demutualization and incorporation of exchanges
Establishment of Central Securities Depository
Possibility to launch new Islamic financial institutions and supervising them
Securities & Exchange Organization (SEO) Main TasksTo Prepare by-laws, rules & regulations regarding capital market
To supervise the good performance of Law and related rules and regulations
To issue, suspend or cancel licenses of Exchanges, Associations, OTCs and Financial Institutions
To take necessary measures for preventing violations in the securities market
To supervise activities of Exchanges, Associations and financial institutions
SEO Organization ChartBoard of Directors
President
Dept. of Research, Development & Islamic Studies
Dept. of Public Relations &
International Affairs
Secretariat of the High Council Security Office Internal Auditor
Deputy of Supervision on
Exchanges & Issuers
Dept. of Supervision on
Exchanges
Dept. of Supervision on
Primary Market
Dept. of Supervision on
Issuers
Board of Cooperation
with Auditors & Accountants
Executive Deputy
Dept. of Information Technology
Dept. of Financial
AffairsDept. of Human
Resources & Logistics
Deputy of Supervision on
Financial Institutions
Dept. of Supervision on Financial Institutions
Dept. of Supervision on Brokers
Deputy of Legal Affairs
Dept. of Criminal &
Judicial AffairsDept. of Offence
Prosecution
Secretariat of the Arbitration
Board
Secretariat of the Board of Directors
Boardof Directors' Steering Committees
SEO Main ObjectivesDeveloping Islamic financial instruments, institutions and securities
markets
Developing infrastructure and Information Technology in capital market
Improving investor education
Expanding relationships with foreign supervising entities and related international entities
Systemic Risk Management
Market integrity
Investor protection
SEO Main Fulfilled Goals
Launch of IME international floor in Kish free zone
Launch of new issuers mechanized information system (CODAL) with digital signature
Introduction of new markets (Over The Counter)
Launch of new trading system
MoUs Signed with Some other similar entities
Developing more regulated financial institutions (Investment banks, Investment Advisors, Mutual funds, ….)
Introduction of new Islamic Financial instruments such as Islamic Futures, Mosharakah, Ijarah, Murabaha, etc.
Introduction of Financial Institutions and Instruments Development Act
Introduction of On line Trading and Telephone trading
Introduction of crude oil trade in Iran Mercantile Exchange
SEO Future Plans
Creating a more regulated and transparent market
Implementing severe punishments for non-disclosure, manipulation, fraud and insider trading
To enhance risk management in financial institutions
Tehran Stock Exchange & Iran FarabourseDate of establishment: 1967 & 2009
Markets:• Main Board (A&B)• Secondary Board
# of Listed Companies: 339 & 32
# of Brokers: 87
Main indices: • TSE all share price (TEPIX)• Industrial index• Financial index• TSE - 50
Clearing & settlement: T + 3
Tehran Stock ExchangeBest performing market in 2011
• 29.25 percent return in index
The most diversified Industrial Classification• 36 industrial sectors based on ISIC
Best performing market in the past decade• 583 percent return in index, 1,343 percent increase in Market Capitalization,
and 1,464 percent increase in turnover
Market returns in 2009, 2010 and 2011• 30, 67 & 32 percent respectively
One of lowest P/E ratios in the world• around 6
Red carpet welcome for foreign investors
Iran Mercantile ExchangeDate of establishment: 2007
# of brokers: 75
Traded commodities:
• Metal & Industrial: Steel, Copper, Aluminum, Minerals, Gold
• Multi-commodity: Bitumen group, and agricultural: Cereals, Oil cake and seeds group, Dried and trans products, Crop group
• Petrochemical and Oil Products:, Chemical products, Polymer group, Extract group, Oil group, Naphtha group
Iran Mercantile Exchange(IME)
The most diversified commodities market in the region
Trading in 4 rings, 11 main groups and 181 by products
• 4 main rings: Industrial, Oil and Petrochemicals, Agricultural and Futures
One of very few Commodities Market that trade Steel contracts
Export Ring in Kish Island (Free Trade Zone)
Trade in all different contracts in IME, spot, futures, credit, forward and options
Securities & Exchange
Organization of Iran
April 2012