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IFB

Iran Fara Bourse

As a public joint-stock company located in Tehran, the IFB commenced operation in November 2008. The IFB is Iran’s second equity market and functions as conventional OTC markets but with more features. The market is a self-regulatory entity while being supervised by the SEO. The IFB is a market for both listed and unlisted securities and also other financial instruments.

The IFB by nature tries to design innovative financial instruments in the capital market which helps to direct capital towards developmental plans and economic prosperity. The IFB comprises five markets, each of which serves a unique role in the capital market.


 

First and Second Markets

As the main markets for trading equity shares and their right offerings but enjoying more functions than the ones in the TSE, the first and second markets in the IFB have fewer conditions and requirements for listing.

Requirements

First Market

Second Market

Registration with SEO

 

 

Public Joint-stock Co.

 

 

No accumulated loss

 

-

Profitability of last fiscal year

-

Minimum Market Capitalization[1]

(million USD)

3.3

0.3

Minimum No. of Shareholders

200

-

Minimum Free-Float Shares (%)

10

5

Minimum Activity Record (Years)

2

1

Minimum Profitability Periods (Fiscal Years)

1

-

Equity to Asset Ratio (%)

15

-

 

Base Market

Public limited companies whose shares are not listed on any of the markets but, as all public companies have to, are registered with the SEO and are eligible to be traded on this market with no restrictions. Registered companies are categorized into the following groups:

1.      Public companies which do not tend to be listed but according to the laws and regulations have been registered;

2.      Companies which are registered but do not meet listing requirements, and

3.      Companies which are delisted from the TSE or IFB.

Convenient private placement, transparent ownership transfer, fair shares pricing, and tax relief for companies are among the advantages of this market.

 Third Market

The IFB third market has been designed for specific types of transactions. Four services are provided mainly to institutional investors in this market as follows:

·         Private Placement: A private/public limited company including state-owned and private which is not listed on the capital market and also not registered at the SEO can request to sell a percentage of its share in this market.

·         Stock Repurchase: A company which is listed on the capital market may intend to buy back a specific number of its outstanding shares. Companies which chose the exit strategy or are delisted from the TSE or IFB would opt for this market.

·         Underwriting: The market acts as the primary destination for underwriting various securities.

·         Intellectual Property: The most recent market in Iran capital market to promote and support inventions, researches and new ideas and direct them to industrial investors and venture capitalists.

 

Modern Financial Instruments Market

All types of financial instruments; especially Islamic securities approved by the Securities and Exchange High Council, are eligible to be listed and traded on this market:

·         Certificate of Deposit (CD);

·         Sukuk (Murabaha, Ijara, Musharaka);

·         Housing Mortgage Right (HMR); and

·          ETFs

 

 



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