The Bourse Council
The Bourse Council is the highest authority and is responsible for all related policies, market strategies, and the market supervision in Iran. The Chairman of the Council is the Minister of Finance and Economic Affairs; other members are: Minister of Trades, Governor of the Central Bank of Iran, Managing Director of Chamber of Commerce, Managing Director of Chamber of cooperative, Attorney General, Chairman of the Securities and Exchange Organization, representative of active market associations, three financial experts on proposal of the Economics Minister and approval of the Council of Ministers, and one representative for each commodity exchange.
The Securities and Exchange Organization (SEO)
The SEO is in charge of administration and supervisory duties governed by the Board of Directors. The SEO’s Board of Directors are elected by the Securities and Exchange Council. SEO is the only regulatory body for the regulation and development of the capital market in Iran.
Central Securities Depository of Iran (CSDI)
The CSDI was established due to the market law of the Islamic Republic of Iran in terms of registration, custody, and transfer of securities ownership, and clearing and settlement of securities as well. CSDI is a public joint stock company which is owned by the Securities & Exchange Organization, Banks, Brokers and private sectors. Decisions made in general assembly requires the approval of Securities & Exchange Organization in order to be valid.
Tehran Securities Exchange Technology Management Co. (TSETMC)
The Tehran Securities Exchange Technology Management Company (Corporation) was registered on 1st June 1994..TSETMC Provides specialized technical services with respect to the processing of financial economics data and information; computer applications such as hardware, software, networks; and implementation and optimization of operational, managerial and computerized approaches of trading securities, commodities and financial instruments.
Tehran Stock Exchange (TSE)
Opened in 1967 and so far the largest stock exchange in Iran. The TSE is located in Tehran and is a founding member of the Federation of Euro-Asian Stock Exchanges, which has been one of the world’s best performing stock exchanges in the years 2002 through 2013. TSE is considered as a “frontier” market. In comparison to other regional markets, the most significant advantage of Iran’s capital market is presence of 40 industries listed in the exchange.
Industries such as the automotive, telecommunications, agriculture, petrochemical, mining, steel iron, copper, banking and insurance, financial mediation and others trade shares at the stock market which makes it distinctive in the Middle East. The second advantage is that most of the state-owned firms are being transferred to the pubic under the general policies of article 44 in the Iranian constitution. The TSE is open for trading five days a week from Saturday to Wednesday, excluding public holidays. Trades are being executed through the Automated Trade Execution System from (8:30 am Pre-market) 9 am to 12:30 noon, which is integrated with a clearing, settlement, depository and registry system. Settlement is T+3.The TSE is solely an order-driven market and all transactions are performed under the ethical conducts of open auction.
Iran Fara Bourse (IFB)
The Iran Fara Bourse is a market for securities and other financial instruments. Its transactions officially started in four market sections including First Market, Second Market, Third Market and New Financial Instruments Market on September 28, 2009. In order to provide more facilities for smaller industrial companies, IFB provides an easier listing process in comparison to Tehran Stock Exchange (TSE).IFB was created for the purpose of financing manufacturing and service companies by facilitating the process of listing. The main goal of IFB is to boost and strengthen the national economy through production by focusing on the capital market features of financing projects and redistribution of projects’ income.
Sukuk (Islamic Bonds)
Housing Mortgage Right (HMR)
Exchange Traded Fund (ETF)
Exchange Traded Project Fund (ETPF)
Fixed Income Bond
Iran Mercantile Exchange
The Iran Mercantile Exchange was established on September 20, 2007, following the merger of the agricultural and metal exchanges of Tehran. The merger started a new chapter in Iran capital market providing unlimited trading opportunities for the investors inside and outside of the country.
Iran Energy Exchange
Iran is a major oil and gas producing country holding the world’s largest known reserves of hydrocarbon resources. Well-endowed with huge energy resources in the world, Iran deserves to have one of the world’s largest energy exchanges. Establishment of Energy Exchange would develop the Iranian energy market leaving positive impacts on the country’s overall economy as well. Energy exchange contains three different markets including physical, derivative, and secondary markets. Each of these markets hold both domestic and international rings. The physical market lists electricity, oil and gas, and other energy carriers. The derivatives market includes standard parallel futures contract, futures contract, and options contract.