Iran plans to boost stock exchange

Business Materials 14 September 2020 17:07 (UTC +04:00)
Iran plans to boost stock exchange

TEHRAN, Iran, Sep.14


Iranian government and parliament would take new decisions to boost the stock exchange since the country's economic future is connected to the capital market, said Deputy Minister of Economic Affairs and Finance.

"Banks are handling a major part of financing but now we have to support and develop the capital market as the main source that would finance economy," said Mohammad Ali Dehghan Dehnavi, Trend reports citing TASNIM.

"The future of our economy is tied to the capital market and there should not be concerns about the fluctuation in the market as long as policies to use treasury bonds and participation of shareholders continues," he said.

"The government should reform the market's structure so small shareholders are not harmed by volatility. Furthermore, the government should actively prevent erratic behaviors," he added.

"The investment on the capital market was positive from the start of the current Iranian year (started March 20, 2020) and more than $23 billion has been invested in the stock exchange but the average floating stock is less than 25 percent while shareholders shares are 75 percent," he noted.

"The erratic behavior of some small shareholders would create an imbalance in the market and lead to a reduction in prices that would also hurt big shareholders," Dehnavi said.

"The long terms view in shareholding and the right choice of buying share via investment companies would prevent damaging shareholders," he added.

The parliament has held a session on Sunday to support the capital market and take trading more seriously to resume balance in the market.