TEHRAN, Iran, May 19
Trend:
The Deputy Minister of Economy said that the income from the sale of state owned shares via the Exchange Trade Fund (ETF) will be used for development projects.
“The total revenue from the sale of state owned assets via ETF will be about $4 billion,” Abbas Memarnejad said, Trend reports citing IRNA.
“Out of this amount, $3.8 billion will be given to the government and the rest of it will remain in the fund,” he said.
On May 2, the Tehran Stock Exchange (TSE), which is the main stock exchange of Iran, named the first exchange-traded fund from a series of three ETFs, through which shares of some state-owned organizations and companies are planned to be offered.
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur.
The shares to be offered via Iranian ETFs belong to those governmental entities that identified in Iran’s privatization program, which is pursued by the government to downsize and reduce its role in the economy.