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History

1936

The concept of launching a capital market in Iran dates back to 1936 when authorities, in an attempt to accelerate industrialization process, engaged experts from exchanges all around the world to conduct researches about the possibility of establishing a stock market in Iran. The result was a report outlining recommendations with respect to necessary legal and business frameworks as a proper foundation for a capital market in Iran. However, global economic and political developments such as outbreak of WWII postponed introduction of a formal capital market.

 

1966

Following economic and social developments and industrial boom in the 1960s, raising capital for businesses turned into a necessity. Therefore, initiating capital market with diverse financial instruments became high on the government’s agenda; hence, Securities Market Act ratified by the Iranian parliament in May 1966. The Tehran Stock Exchange (TSE) officially commenced operations in April 1967 to encourage private sector’s participation in bolstering Iran’s already booming economy.

 

1970s

During the 1970s, the rapid economic expansion led to more listings on the TSE and accordingly the number of listed companies rose to 105 in 1975.

 

1980s

Economic developments following the Islamic Revolution of Iran in 1979 required control of the economy to be transferred to the public sector. This led to lack of adequate attention paid by the private sector. Simultaneously, the introduction of Islamic banking laws led to the nullification of interest rates and the end of bond trading on the capital market. Moreover, eight years of the imposed war caused the equity market to enter a sluggish phase.

 

1990

Trading on the TSE entered a growth phase following the first post-war Budget Act, enacted in March 1989, which substantially promoted the private sector’s role in revival of the economy. The TSE, dormant for almost ten years, was then entrusted as an efficient, dependable and equitable vehicle with privatization of state-owned entities and for channeling capital into the appropriate sectors of the economy.

 

1991

TEPIX as the main indicator of market movement has introduced. The base value was 100.

 

1992

TSE became the member of the World Federation of Exchanges (WFE).

 

2003

In September 2003, Tehran Metal Exchange (TME) was established as the first commodity exchange in Iran.

 

2004

In July 2004, the “Information Dissemination and Services Company (SIDSCO) was established. SIDSCO is the main entity focusing on enhancing financial literacy in Iran capital market.

 

2004

In September 2004, Iran Agricultural Commodity Exchange (IACE) was established.

 

2004

Trading on the TSE entered a growth phase following the first post-war Budget Act, enacted in March 1989, which substantially promoted the private sector’s role in revival of the economy. The TSE, dormant for almost ten years, was then entrusted as an efficient, dependable and equitable vehicle with privatization of state-owned entities and for channeling capital into the appropriate sectors of the economy.

 

2005

New Securities Market Act (the Act) of the Islamic Republic of Iran, 40 years after the establishment of the TSE, was ratified by the Iranian Parliament in November 2005 to meet the new financial environment and provide a more advanced capital market. Based on this new law, the supervision and administration function was assigned to two separate bodies, i.e. the SEO and TSE.

 

2005

In November 2005, Central Securities Depository of Iran (CSDI) was established. CSDI is the only entity engaged in post trading of the Iranian capital market, i.e. clearing, settlement and depository.

 

2006

The general policies of Article 44 of the Constitution of Islamic Republic of Iran (Article 44) were officially announced in 2006. Based on the state-owned privatization plan stated in Article 44, the government was assigned with the task to gradually issue shares of many state-owned companies through initial public offerings. This led to giant companies from diverse industries to be listed on one of the exchanges.

 

2007

“Comprehensive Database of All Listed Companies (CODAL)” was introduced as the main page of all financial and vital information related to all listed companies.

 

2007

In October 2007, the Iran Mercantile Exchange (IME) was established following the mergers of Tehran Metal Exchange and Iran Agricultural Commodity Exchange.

 

2008

In November 2008, the Iran Fara Bourse Co. (IFB) was established as the second equity market in Iran, aiming to absorb SMEs and derivatives, focusing on small and mid-cap companies.

 

2009

The Law for Development of New Financial Instruments and Institutions (The Development Act) was ratified in 2009 to facilitate implementation of Article 44 which paved the way for new entities (e.g. investment banks and different funds), new instruments (e.g. Islamic securities) to practically commence operation.

 

2010

Online trading was inaugurated. More than 40 percent of market transaction was carried out online.

 

2010

IRVEX was created. It is a virtual trading platform designed for educational and training purposes.

 

2012

The Iran Energy Exchange (IRENEX) was established as the second commodity exchange in Iran.

 

2014

TEDAN, a subsidiary of CODAL, was launched for more analyses on companies.

 

2016

Iran capital market upgraded and retrofitted its trading system.

 

2017

The SEO launched more diverse programs on financial literacy and investor education such as “Press Festival” and “League of Stars”.

 

2017

More financial instruments and institutions were introduced: Venture Capital, Funds of Funds, Crowd Funding, MBS, Private Equity Funds and Options Trading.

 

2017

A platform for full identification of all capital market customers (SEJAM) was introduced (an electronic KYC).

 

2018

The SEO got an ordinary member and MMOU signatory of the “International Organization of Securities Commission (IOSCO)”.