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New Market Regulations to be Set This Year

Capital market authorities plan to amend the current regulations in a bid to address legal loopholes and facilitate trading of stocks, a top financial official said May 1, 2017

Capital market authorities plan to amend the current regulations in a bid to address legal loopholes and facilitate trading of stocks, a top financial official said May 1, 2017.

“Leal loopholes have already been identified, and we have to put regulation reforms on the agenda,” Securities and Exchange Organization Chairman Dr. Shapour Mohammadi said, in an address to a conference held for the first time in the country to review legal issues in the capital market.

He said both the market regulations and the trade law must be amended.

“Some of the concepts included in the law are ambiguous, while some new concepts should be defined,” he noted, while trying to clarify why regulations must be reformed as soon as possible.

The new regulations will help officials monitor daily transactions so closely that manipulated transactions in shares of listed companies can immediately be identified and addressed, Dr. Mohammadi said.

Every act that could affect the market trend in a negative way is defined as a crime in the Iranian capital market. Those violating the regulations might be forced to pay a penalty of up to 1.5 billion rials (for real persons) or up to 2.5 billion rials (for legal entities), according to the existing law.