Doing Business - Iran

I

n 1390, Tehran Stock Exchange Price Index (TEPIX) increased from 23,294.9 points at the beginning of the year to 25,905.6 at year-end, indicating 11.2 percent growth in return on equities. Other TSE indices grew moderately in 1390 as well, pointing to a slight increase in prices in all sections of the market. During 1390, all TSE indices indicated a minor growth, mainly due to the fall in the prices of raw materials, decrease in new listings under article 44 of the Constitution, lucrative returns on gold and foreign exchange markets, and imposition of economic sanctions. The free float adjusted index, calculated with the aim of computing the effective weight of firms based on the percentage of free floating shares, rose 12.9 percent from 29,178.2 points at end-1389 to 32,946.3 points in 1390 year-end. This index showed 84.5 percent growth in 1389.

First and second market indices increased by 10.4 and 15.9 percent, respectively, in 1390. In this year, financial and industrial indices went up by 0.6 and 14.4 percent, respectively. Reviewing the monthly movements of the TEPIX reveals that the highest return of the TSE was related to Farvardin, with a growth rate of 13.7 percent compared with the month before. TEPIX indicated an average negative growth during 1390, pointing to 2.2 percent decline in Esfand 1390 compared with Farvardin of the same year. Except for months Farvardin, Mordad, Shahrivar, Dey, and Esfand of the year [pic 1][pic 2][pic 3]

1390, TEPIX recorded negative growth in all other months of this year. The monthly movements of financial index in this year indicated that the highest growth by 11.2 percent was related to Farvardin 1390, compared with Esfand 1389. Financial index had a fluctuating trend in the following months, registering 9.6 percent fall in Esfand 1390 compared with Farvardin.

The highest increase in the industrial index (14.3 percent) was related to Farvardin 1390 compared with Esfand 1389. In all months of 1390, except for Mordad, Shahrivar, Dey, and Esfand, the industrial index registered negative growth.[pic 4]

The Securities and Exchange High Council and the Securities and Exchange Organization formulated and approved a set of rules and guidelines in 1390 as follows:

• Mutual Funds Prospectus (investment in foreign currency assets with guaranteed minimum income);
• Statutes (Articles of Association) of Tehran Stock Exchange (TSE) (public joint-stock company);
• Statutes of Philanthropy Investment Fund;
• Statutes of OTC Market (public joint-stock company);

Chapter 17 CAPITAL MARKET

∙ Executive Guideline on Emergency Conditions, Subject of Article 32, Securities Market Act of the Islamic Republic of Iran;

∙ Executive Guideline on trading of negotiable securities on the OTC market;

∙ Executive Guideline on conducting securities transactions in the main OTC market;

∙ Guideline on documentation, registration, and reporting of information by supervised parties;