TEHRAN – Iran’s Minister of Finance and Economy Ehsan Kandouzi said that fundraising through Iran’s stock market increased by 100 percent in the last Iranian calendar year (up to March 19), ISNA reported.
According to Kandouzi, the stock market provided 500 billion rials (about $1 million) of capital to fund various projects last year, compared with 250 billion rials (about $500,000) the year before.
In June 2023, Majid Eshki, head of the Securities Exchange Organization of Iran (SEO), said that attracting capital to companies operating on the stock market is a priority for the organization and that it is taking it seriously.
“Fundraising through capital markets should be facilitated and achieved in a short period of time,” Eshki stressed.
Officials expressed hope that a positive outcome in this regard would be achieved by the end of the year.
According to the SEO head, development of IT infrastructure is also considered as one of the priorities for the stock exchange organisation.
“There will be significant improvements in the trading system and follow-up process,” he noted.
In late January 2024, the deputy governor of the Central Bank of Iran (CBI) stressed the need for diversified financing sources in the country, noting that such sources are currently provided by the stock market.
“There is a need to diversify financing sources to reduce speculative and commercial activities of domestic dealers,” Mohammad Sirijan said.
“Capital markets are an institution that efficiently channels capital to production. Now, funds should be channeled to businesses to accelerate the process of resource transfer and higher productivity,” the official explained.
Urging the government and Parliament to pay more attention to the stock market, Sirijan said, “If the government and Parliament pay more attention to the capital market, resources will be withdrawn from unproductive markets and bubbles in other parallel markets (currency, coins, gold, housing, automobiles etc.) will be reduced.”
On the important way of raising financial resources in the equity market, Sirijan said: “Sukuk bonds and investment funds are one of the most important fundraising instruments in the capital market as they are designed based on the needs and risk tolerance of companies and individuals.”
According to the official, capital markets are well suited to long-term financing of construction projects, and if implemented properly, such financing will lead to sustainable economic growth and development.
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