SEO
Home / Education / Markets / TSE

TSE

 Tehran Stock Exchange

 The TSE is Iran’s first and largest equity market. Initially launched in February 1967, the TSE listed six companies later on accompanied by other financial instruments such as treasury bonds and certain state-backed certificates.

As of today, the TSE is the pioneer market in Iran with more than 318 well-established companies from 41 diverse industries listed on this exchange. The Act, ratified in November 2005, restructured Iran capital market resulting in the establishment of the SEO as the supervisory body and the TSE as an equity market. The TSE previously known as “Brokers Organization” used to be a non-governmental public organization whose board members were mainly appointed from brokerage firms but since 2006, it has turned into a self-regulatory public joint-stock corporation.

  

Trading Model

Legal Structure

Public Corporation

Status

Self-regulatory (under SEO’s supervision)

Trading Venue

Tehran

Trading Days

Saturday to Wednesday

Trading Hours

8:30 to 9:00 (Pre-opening)

9:00 (Opening based on Theoretical Opening Price)

9:00 to 12:30 (Continuous auction)

Trading System

Automatic Trading System (ATS), Order-Driven

Trading Mechanism

Opening auction, Continuous trading

Securities

Equity Shares and right offerings, Sukuk, ETFs, Embedded Put option, Futures on stock

Order Priority

Price, time

Market Making / Liquidity Providing

ETFs, Sukuk (Mandatory)

Other Securities (Elective)

Daily Price Fluctuation Limit

Shares (±5%), Right offerings (±10%), Bonds (±1%)

Available Real-Time Data

Prices (open, close, high, low), three best bids & asks, indices, Companies’ data

Close Price Calculation

Weighted average based on reference volume


Incentives

The macro-economic policy of Iran has always been to incentivize companies and their commodities to be listed on exchanges. To achieve so, the Iranian authorities have eased and facilitated the act of investment in various ways, one of which is tax relief regulations. The items below are noteworthy in this regard.

·         TSE’s listed companies are eligible to 10% tax relief (the rebate would be doubled if the amount of free-float shares exceeds 20%);

·         IFB’s listed companies are eligible to 5% tax relief (the rebate would be doubled if the amount of free-float shares exceeds 10%);

·         Proceeds of selling commodities on the IME and IRENEX are eligible to 10% tax relief.

 

Listing

Requirements

First Market

Second Market

Main Board

Secondary Board

Registration with SEO

 

 

 

Public Joint-Stock Co.

 

 

No Accumulated Loss

 

 

 

Positivity of Last Two Years’ Accumulated Operational Cash Flow

 

 

 

Profitability of the Last Fiscal Year

 

 

 

Audited Financial Statements for Last Fiscal Year

 

 

 

Minimum Market Capitalization[1]

(million USD)

28.5

14

6

Minimum No. of Shareholders

1000

750

250

Minimum Free-Float Shares (%)

20

15

10

Minimum Activity Record (Years)

3

3

3

Minimum Profitability Periods (Fiscal Years)

3

2

1

Equity to Asset Ratio (%)

30

20

15

Settlement

Financial Asset Type

Settlement Time

Equity

T+3

Fixed- Income Securities and All Types of Sukuk

T+1

ETFs

T+2



[1] 1USD= 31,744IRR (2014), 1USD=33,953 (2015)