Baku, Azerbaijan, May 4
By Farhad Daneshvar - Trend:
Securities and Exchange Organization of Iran (SEO) issued 1.786 billion worth of Islamic Treasury bills over the last year.
The organization has started issuing Islamic Treasury bills since 2014 aimed at settling the government's debt to contractors, Seyyed Abbas Mousavian Secretary of Shariah Committee at the Board Securities & Exchange Organization of Iran said, IRNA news agency reported.
He added that the Islamic scholars found out that issuing Islamic Treasury bills as a financial instrument is not against the religion.
Iranian capital market issued treasury bills for a maturity of 5.5 months in September 2015 that were traded in the market on the basis of discounting in Iranian Islamic capital market.
There is no coupon payments for these instruments and investors may gain from the different prices on what they pay and what they receive when they want to sell. This is on the basis of discounting structure, the SEO website said.