Restrictions on foreign investors entering the stock market was resolved by creating an ‘’Escrow Account’’
Managing Director of Mellat Bank stressed that the related account used for entering the money of foreign investors, is ‘’Escrow Account’’. He mentioned that, one of the main obstacles for foreign investors in Iran’s capital market is opening an account but with the implementation of the ‘’Escrow Account’’, the limitation of foreign investors for opening an account has been completely removed.
According to the ‘’Mellat Bazar’’, Hadi Akhlaghi managing director of Mellat Bank said, ‘’due to difficulties in opening an account for foreign investors Central Securities Depository of Iran and Mellat Bank signed a memorandum of understanding to facilitate the transfer of money for foreign investors. Based on this MOU, Mellat Bank from now on through an ‘’Escrow Account’’ take the responsibility of doing transactions of securities and commodities in all of Iran’s exchanges.’’
He said that one of the main problem of Iran’s capital market for attracting foreign investment was the impossibility of opening bank account but now with help of this memorandum foreign investors can transfer their money without opening account but through Mellat Bank branches.
He said that this MOU was signed with aim of developing Iran’s capital market in international field and to attracting more foreign investors and he mentioned that with this MOU, reception, membership and presence of Mellat Bank in CSDI has achieved.
He pointed out that for the purchase of shares, foreign currencies should be converted into Rial and by virtue of this MOU and by creating ‘’Escrow Account’’, the conversion process of foreign currency into Rial was successfully achieved through Mellat Bank.
According to director of Mellat Bank, those international customers who wish to invest in Iran’s capital market from now on can transfer their money through external brokers of Mellat Bank.
He responded to the question of how many branches cooperate for mentioned process with: ‘’three branches of Mellat Bank in Turkey, Saudi Arabia and UK are active and moreover other banks and brokers that are active in international level, can participate in this process’’.