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Protecting Investors’ Rights, SEO’s Top Mission

Ministry of Economic Affairs and Finance held its 15th meeting of Legal Coordination Council with affiliated organizations on March 10. The meeting was attended by SEO’s Chair Shapour Mohammadi and Legal and Parliamentary Deputy of MEAF Esmaeel Jalili through which Citizenship Rights Portal named Dadshahr was officially launched.

Legal cases involving the SEO has high diversity which requires well-established structures empowering the regulator to have effective coordination with MEAF. “Besides technical and technological expertise, the legal capability is also important as a slight negligence may lead to irremediable damages,” Mohammadi said.

The three cardinal arms of legal deputy of SEO are arbitration, offence prosecution, criminal and judicial affairs. Arbitration board, the head of which is a judge from Iranian Supreme Court, has two highly educated experts with financial and legal expertise. The board’s verdicts are definitive and binding.

The offence prosecution department by the virtue of the powers vested in SEO can take separate punitive measures against legal entities and their natural persons the proceeds of which are transferred to government accounts. The third arm, criminal and judicial affairs department, file lawsuits as a plaintiff in courts and follows the execution of sentences.

Mohammadi emphasized that rules, regulations, justice and fairness are the cornerstone of both SEO and MEAF and have been duly considered in every verdict issued. “Deterrence, however, is more important in the eyes of regulators for which SEO established Offence Prevention Office,” he added.

To help this principle, Rayan Bourse, a subsidiary of SEO, has launched a web service which among others reminds the issuers of their timely responsibility like publishing their periodic financial reports.

The CEO went on to say that those rules and regulations which do not reduce market risks and are not preventive are being amended or repealed.

In this regard, Legal Deputy of SEO Jafar Jamali mentioned that new set of capital market regulations centred around preventive measures will be introduced in which information technology has a bolder role.