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Establishment of "Waqf (Endowment) Fund" in the capital market

Iran capital market is about to introduce "Waqf (Endowment) Fund" aiming to cover the benevolent intentions of individuals.

Iran capital market is about to introduce "Waqf (Endowment) Fund" aiming to cover the benevolent intentions of individuals.

According to the plan, the Fund will establish for charitable purposes, such as the development of religious sites, the construction or development of healthcare activities, school construction or alike.

The fund manager, after obtaining the necessary permits from the relevant authorities, will issue the fund units. Alternatively, charitable people who intend to participate in the Waqf activities will receive the fund units by providing their financial resources to the fund manager.

It is noteworthy that the fund manager uses financial resources and buys the assets that are eligible for the endowment from the owners of the units and then dedicates the assets for the specific purposes mentioned in the fund's articles of association.

The asset that the fund manager buys under the "Waqf Fund" plan is actually a "stock", but not every share of the capital market is eligible for this purpose.