The general purpose of the Securities and Exchange Organization (SEO) is to provide a safe environment for investing in securities through supervising the participants’ activities in that market and to ensure that efficiency; fairness and order govern securities markets. The results of such supervision facilitate capital establishment and subsequently, improve macro-economic variables. This aim is fulfilled through supervising best practice of Securities Market Act of the Islamic Republic of Iran, passed in 2005 and in order to realize those aims, a series of by-laws and implementation instructions have been developed, approved and duly notified.
The laws and rules that govern Securities Market Act of the Islamic Republic of Iran have emerged from a simple concept; that is, all investors including institutional and individual should have access to the entire fundamental realities they need in making sound decisions to purchase, save and sell securities. For that purpose, the SEO has required all public joint stocks to register with the SEO and the listed companies on the stock exchanges are obliged to publish their financial information and other effective data in investors’ decision making.
Those important facts help investors with their investment judgments and decisions making.
To ensure such environment has been created, the SEO has improved its supervisory structure and interaction with specialists and other professionals in securities industry participants in order to become aware of their concerns and to benefit from their experiences in its approach to achieve its highest activities.
The SEO supervises and regulates the entire capital market and is deemed as the key element in the capital market. There have been markets which have moved in the process of evolution and there will be more markets in future as well. Furthermore, there are entities that are in the process of design, regularization and legalization; such as, joint investment funds that aim at contributing to non-professional investors in their investments in securities, investment banks and rating agencies that help economic firms with their financing, risk management, acquiring shares in the relevant markets and acting in global markets; investment advisors that provide consultation to participants in securities industry in their decision making and help institutes which have already been serving investors through professional entities such as brokers and investment firms.
Although Iranian capital market is 40 years old, it still needs assistance of all concerned and interested groups in its mission of realizing the economic development plans as set forth in its agenda. The present market is a heritage of our precedents and the future market, in turn, will be our heritage for the future generation. In this historical path, we hope to benefit from collaboration of different groups apart from profitability perspectives to aim at developing a national Iranian market that enjoys the characteristics of a safe, fair, transparent and efficient market to move towards the SEO’s objectives.