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TSE

Tehran Stock Exchange

The TSE is Iran’s first and largest equity market. Launched in February 1967, TSE listed six companies initially and later on accompanied by other financial instruments such as treasury bonds and certain state-backed certificates.

As of today, TSE is the pioneer market in Iran with more than 330 listed companies from 40 diverse industries (as of January 2020). The Market Act, ratified in November 2005, restructured Iran capital market, resulting in the establishment of the Securities and Exchange Organization as the supervisory body and the TSE as the equity market. TSE previously known as “Brokers Organization” used to be a mutual non-governmental public organization whose board members were mainly appointed from brokerage firms; however, since 2006, it has turned into a demutualized exchange, self-regulatory public joint-stock corporation.

 

Trading Model

Legal Structure

Public Corporation (Self-listed)

Status

Self-regulatory (under SEO’s supervision)

Trading Venue

Tehran (+1500 trading access points nationwide)

Trading Days

Saturday to Wednesday

Trading Hours

8:30 to 9:00 (Pre-opening)

9:00 (Opening based on Theoretical Opening Price)

9:00 to 12:30 (Continuous auction)

Trading System

Automatic Trading System (ATS), Order-Driven

Trading Mechanism

Opening auction, Continuous trading

Securities

Equity Shares and right offerings, Sukuks, ETFs, Embedded Put option, option, Futures

Order Priority

Price, time

Market Making / Liquidity Providing

ETFs, Sukuk (Mandatory)

Other Securities (Elective, unless listed since 2017)

Daily Price Fluctuation Limit

Shares (±5%), Right offerings (±10%), Bonds (±5%), Futures (±5%)

Available Real-Time Data

Prices (open, close, high, low), three best bids & asks, indices, Companies’ data

Close Price Calculation

Weighted average based on reference volume

Foreign Investment

Allowed

Equity Trading Commission (buy+sell)

%0.939 + %0.5 transaction trading tax payable by seller

 
 
 

Incentives

The macro-economic policy of Iran has always been to incentivize companies and their commodities to be listed in exchanges. To achieve so, the Iranian authorities have eased and facilitated the act of investment in various ways, one of which is tax relief regulations. The items below are noteworthy in this regard.

·         TSE’s listed companies are eligible to 10% tax relief (the rebate would be doubled if the amount of free-float shares exceeds 20%);

 

 

Listing

 

Requirements

First Market

Second Market

Main Board

Secondary Board

Registration with SEO

 

 

 

Public Joint-Stock Co.

 

 

No Accumulated Loss

 

 

 

Positivity of Last Two Years’ Accumulated Operational Cash Flow

 

 

 

Profitability of the Last Fiscal Year

 

 

 

Audited Financial Statements for Last Fiscal Year

 

 

 

Minimum Market Capitalization[1]

(million USD)

28.5

14

6

Minimum No. of Shareholders

1000

750

250

Minimum Free-Float Shares (%)

20

15

10

Minimum Activity Record (Years)

3

3

3

Minimum Profitability Periods (Fiscal Years)

3

2

1

Equity to Asset Ratio (%)

30

20

15

 

 Settlement


Settlement Time

Equity, Derivatives, ETFs

T+2

Fixed- Income Securities

T+1