Note: TSE is self-regulated under SEO supervision. Iran’s largest forex brokers with 1000 leverage cast exchange, which first opened in 1967. The TSE is based in Tehran. 21 billion were listed on TSE.
The most important advantage that Iran’s capital market has in comparison with other regional markets is that there are 37 industries directly involved in it. The second advantage is that most of the state-owned firms are being privatized under the general policies of article 44 in the Iranian constitution. Under the circumstances, people are allowed to buy the shares of newly privatized firms. The concept of stock industrialization dates to 1936, when Bank Melli, together with Belgian experts, issued a report detailing a plan for an operational stock exchange in Iran. Everything came to a standstill after the Islamic Revolution leading in a prohibition against interest-based activities and nationalization of major banks and industrial giants. Iraq War did not help matters. Other complementary markets have also been established alongside the equities market.
The artifact features four men, hand in hand, indicating unity and cooperation. Exchange Council is the highest authority and is responsible for all related policies, market strategies, and supervision of the market in Iran. The SEO’s Board of Directors are elected by the Securities and Exchange Council. Under its new structure, TSE has online trading, an arbitration board, digital signature, investor protection, surveillance mechanisms as well as post-trade systems.
Concrete measures that have been taken in the planning and operations of the stock exchange such as the settlement system, geographical expansion, new exchange laws in order to attract local and foreign capital. The new system makes it possible to purchase and sell stocks on the same day. The system has also made it possible for 2,000 brokerage stations to work simultaneously, while the number was just about 480 in the past. The rise in electronic dealing, non-stop input and updated data on orders, transactions and indices are among other features of the new system. The new system has made it possible to link the stock market to the international bourses. The trading system is an order driven system, which matches buying and selling orders of the investors. Investors can place their orders with TSE accredited brokers, who enter these orders into the trading system.
Under the time priority rule, an earlier order takes precedence over others at the same price. Thus, when the lowest sell and the highest buy orders match in price, the transaction is executed at the price. In short, the TSE market is a pure order-driven Market. The trading system also generates and displays details of current and historical trading activity, including prices, volumes traded and outstanding buy and sell orders. This ensures that investors have the required information to be able to take informed investment decisions. Secondary Market is an exchange facility where the listed securities of small and mid-size companies can be traded efficiently and competitively. Iranian rial exchange rate has remained relatively stable from 2003, when Iran adopted a “managed floating exchange rate” until 2012.
Since 1998 importers and exporters have also been permitted to trade foreign-exchange certificates on the TSE, creating a floating value for the rial known as the “TSE rate”. Trading takes place through licensed private brokers registered with the Securities and Exchange Organization of Iran. Thirty-one of the 88 brokerages active in the TSE are licensed to trade the futures contracts. The leverage for futures contracts is set at 1-to-10. Starting March 2011, investors are able to trade in the Iranian stock market through the Internet from anywhere in the world, or get all the necessary information before traveling to Iran.
Presently, TSE trades mainly in securities offered by listed companies. Continuation of privatization plan and IPOs of state-owned companies. Increasing liquidity in securities market with a review on trading regulations. New bylaw to facilitate foreign portfolio investment was ratified by the Council of Ministers in April 2010. Since then, as an incentive to investment in Iran, foreign investors in TSE are tax-exempt.