IRAN Capital Market

Raman Financial Group > IRAN Capital Market

It was in 1962 that the Iran capital market establishment and economic attention to industrial activities and their financial securement agenda was highly considered, this lead to the first capital market legislation approval in National Consultative Assembly in 1967. One year later in 1968 with the accepting Bank of Industry and Mine and Pars Oil Company stocks, the first security bourse officially started to work. After the approval of the Islamic republic of Iran Security Market legislation in 2008 in Islamic consultative assembly and establishment of the Securities and Exchange organization as the supervisor organization in Iran capital market and also Tehran stock exchange and Iran OTC company establishment, Iran capital market has expanded and improved a great deal with a different structure according to universal Standards.

Tehran stock exchange is divided to first and second markets, derivative and bond Markets and exchange traded fund (ETF). In 2017, total deals value in the stock exchange was 638540 billion Rials. Many Indexes are being used in order to check the market process which the total market index is the most popular one. In 1990 the total market index were defined as 100 number unit and in 2017 this index reduced from 80219 to 77230 unit.

Iran OTC (over the counter exchange) covering 9 markets (first, second, third, small and average company market, base market, modern financial tools market and Derivative) with different regulation and functions. Total OTC deals value in 2016 was 461282 billion Rials. In 2016 OTC Overall index increased 9 percent growth and reached from 806 to 875 unit.  The essential financial statements, financial data and important information of accepted companies in Iran capital market publishes in the CODAL system (www.codal.com) one of the existing challenges for foreign investors is publishing the essential  financial statements in  the country standard national accounting format. To achieve this goal, Securities and Exchange Organization has started to use standard international financial reporting in Iran capital market in order to change the infrastructures and attract foregone investors.

The studies indicates that Iran capital market performance was not very strong and most of the exchange deal commission (Deals in the securities and exchange) are almost 1.44 percent of the deal value. In addition, following the instruction and regulation reforms in 2017, Securities and Exchange Organization has changed the stock deal settlement time from three days after the deal (t+3) to two days (T+2) in order to increase Iran capital market liquidity process.