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Regulations for Private Equity Funds Finalized

Deputy for Supervision on Financial Institutions at the SEO, Saeed Falahpour, announced approval of the regulations for private equity funds by the board.

Deputy for Supervision on Financial Institutions at the SEO, Saeed Falahpour, announced approval of the regulations for private equity funds by the board.

These funds aim to invest in private, non-listed, and listed companies in major stakes to obtain the voting rights, so to influence the decision-making process in the purchased companies to meet their investment goals. Falahpour underlined that the funds are allowed to invest in privately owned companies and SMEs.

The minimum required capital is set at 500 billion rials, with activity duration of seven years. Because of their type of investments, these funds impose higher levels of risks on their investors, so interested parties shall read the articles of association and prospectus diligently, and then sign a corresponding risk acceptance statement. The minimum investment level is set at one billion rials.

The interested parties shall send their fund application to the Iran Fara Bourse to be processed, and if the criteria are met, the establishment license will be granted.