SEO oversees all market segments according to the Act but has always taken pertinent steps to grant authority to subsidiaries and other market participants. To organize and supervise all financial entities in the capital market, article 53 of the Act stipulates establishment of active financial associations. Securities and Exchange Brokers Association of Iran (SEBA) and The Iranian Institutional Investors Association (IIIA) are the two main associations in Iran capital market whose existence like every other industry is essential for the ongoing progress of financial subsidiaries. These two associations are adequately represented in capital market bodies to ensure members’ rights and interest to be continually fulfilled.
Securities and Exchange Brokers Association of Iran was established in line with the emphasis placed on formation and registration of active financial associations in the Act. Brokers’ selected committee proposed the establishment of SEBA to SEO which was subsequently approved as an NGO, non-commercial, non-profit institute and a self-regulatory entity. All active brokerage firms in Iran capital market have to register for SEBA membership and pay the required fees to enjoy its benefits.
The following are the main activities of SEBA:
· Supervise and assess SEBA members and evaluate their staff’s performance within the framework of the law;
· Supervise members’ promotional programs to prevent transmission of inaccurate or misleading information to clients;
· Strive to handle disputes between brokers, traders, affiliated staff and clients;
· revise market developments and provided services by members continuously to help them progress; and
· Communicate and cooperate with other institutions and counterparts.
The Iranian Institutional Investors Association was founded as a self-regulatory, non-governmental, non-trading and non-profit organization.
Members of IIIA are financial institutions registered with SEO including investment companies, holding companies, investment banks, investment funds (including pension funds) and other investment institutions except for brokerage firms.
Unlike SEBA membership, which is compulsory for brokerage firms, other financial institutions are not obliged to join IIIA. The number of IIIA’s members rose to 104 institutions by the end of 2014.
Aside from the aforementioned duties of IIIA, the supervision on the new analytical website TEDAN was granted to this association at the end of 2014 to verify authenticity and accuracy of provided analyses by financial advisers.