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SEO Chairman: “More Novel Instruments, Custodianship, Higher Transparency and Data Dissemination: As Next Steps”

Finance EXPO was held in Kish from November 1-3 and was attended by both domestic and international entities and individuals.
Dr. Mohammadi, SEO Chairman, attended this EXPO as the keynote speaker. In his speech, Dr. Mohammadi delved into some significant areas including but not limited to transparency and information dissemination in the realm of capital market, development of novel instruments, and custodianship.
Stressing the capital market development via absorbing foreign investment, Dr. Mohammadi said that the extension of debt market is among the main programs of the government, which is depicted both in previous and current year’s budget plan. Offering diverse financial instruments, mainly T-Bills, is among the attractive tools for absorbing foreign investment, he noted, and the SEO has already developed these instruments and will proceed this trend so that foreign investors enjoy this diversity for a high-return investment.
Pointing at the market’s recent developments and reformation, the SEO Chairman said that the SEO as the sole regulatory and supervisory authority in the market along with the Iranian exchanges, CSDI and TSETMC are carefully designing new instruments, reforming and upgrading the procedures to the benefit of the investors. He told the audience that options and shariah-compliant short-selling will be introduced soon in the capital market in the days to come.
Dr. Mohammadi also touched on the benefits of foreign investment in the Iranian capital market, saying that Iranian economy benefits from foreign investment, so, increasing transparency including standardizing company reports based on international norms is essential; hence, it is hoped that this step becomes fully operational this year and accordingly the SEO is to implement and oversee the ongoing process.
Another issue mentioned by Dr. Mohammadi was the custodianship in the market. “Custodian is a prerequisite to absorb foreign investment”, said Mohammadi adding that custodians will slash and hedge the risk of foreign investment. The SEO is working on the establishment of custodian entities in the market and has already talked to some local and global custodian banks to start their activities in Iran.