Who is foreign investor?
Non-Iranians and Iranians who are living overseas. In a word, if the source of money came from abroad, it is considered "foreign investment" and may benefit from fund transfer and opening necessary bank accounts for their investment; also to protect and guarantee their capital based on these regulations.
Where can I invest?
Exchanges (Tehran Stock Exchange Co.), OTC market (Farabourse Co.), as well as Futures Market of Iran Mercantile Exchange (IME).
What are the trading instruments?
Shares, rights, Futures (on shares and different commodities such as underlying assets), corporate certificates, different Islamic fixed income securities (Sukuk).
Are there any limitations for FPI?
What is the difference between FPI and FDI?
Strategic foreign investor refers to the one who intends to possess over 10 percent of a listed share. Such foreign investor should contact "Organization for Investment, Economic and Technical Assistance of Iran (OIETAI). They grant the license to buy up to 100 percent of a listed share (as Foreign Direct Investment "FDI"). Please note that such investor cannot withdraw its capital whenever he / she may; he may grant license from OIETAI again. Please refer to Note 10 and 11, Article 1 regarding strategic investors and transferrable funds; also Note 1 of Article 10 of the "Regulation Governing Foreign Investment in the Exchanges and OTC Markets" of this booklet.
What is FIPPA?
FIPPA is the abbreviation for "Foreign Investment Promotion and Protection Act". You may obtain this from OIETAI before invest in capital market; or not. The Act is available on their website.
What are the benefits of "investment funds"?
Foreign investors may share their investments with Iranians, and managing investment will be observed by a well-qualified expert who obtains license. Those experts are well informed of Iranian market and have the ability and expertise in investing in this market. In a word, it is a less risky investment.
Money issues. How can I enter the money and repatriate?
Please refer to Article 10 of "the Regulation Governing Foreign Investment":
- The foreign or Iranian nationalities/entities shall, by obtaining the trading license, be authorized to open accounts in Rials, in foreign exchanges, transfer foreign currencies to Iran, and convert them into Rials and vice versa in the Iranian banks for their banking and investing operations. Transfer of the original capital, capital gains and cash dividends received by the persons/ entities holding trading licenses overseas (outside Iran) shall be authorized in compliance with the national foreign exchange rules and other relevant standards and regulations. The Central Bank (CBI) of I.R.I shall deliver the foreign exchange equivalent of the transferable funds as described in Note 1 of this article to the foreign investor or the Iranian investor holding licenses at the official exchange rate in the national banking system in case of a single currency peg or otherwise, at the floating exchange rate. Under particular circumstances and at the discretion exercised by the Central Bank of I.R.I., such funds shall be payable in equal installments at a four-month interval during the course of one year. The necessary guidelines for implementation of this article shall, within three months as of the approval date of the present regulations, be approved by the Ministry of Economic Affairs and Finance and the Central Bank of I.R.I.
How is a foreign investment account created in Tehran Stock Exchange and Iran Farabourse?
The investor sends the request form for trade permission to Securities and Exchange Organization of Iran (SEO) based on SEO’s criteria for granting permission through an eligible broker. Whenever the permission is issued, the broker sends it along with the request form for account creation to Central Securities Depository of Iran (CSDI) so that the trade account is issued.
What does a foreign investor willing to trade in Iran Energy Exchange need to do?
The broker needs to send the investor’s documents to CSDI based on notice No. 15/94794 (No. in Automation System: 700/21966) date: 20/01/2014
What should foreign individual and institutional investors do in brief?
Foreign investors either individual or institutional, trading shares for the first time, can send the documents mentioned in provision No. 2 of granting permission for trading securities criteria via the broker. After issuing work license, the broker in question needs to send the request for account issuance along with the investment trading license (individual / institutional) and legible image of passport regarding identification details of individual investment to CSDI.
What is Inheritance Transference?
One’s shares and securities are a part of their inheritance which needs to be passed to the heirs by law. Any changes in identification details (individual / institutional) for correction are done in CSDI.
How can I get the verification of my letter of attorney for selling the stocks of my client who is a foreigner?
The attorney needs to be present at Customers Care and Electronic Services Department having the following required documents:
If the client is an Iranian who is a resident abroad
If the client is a citizen of a foreign country
How do I get my / my clients’ portfolio, which I have already requested for, from the counter office?
By receiving your username and the link sent by CSDI which you can download your portfolio from, you can get your requested portfolios directly and with no need to refer to CSDI in person.
How can I get aware of my asset statement / stock turnover?
Get your asset statement / stock turnover by offering identification certificates (passport) and referring to CSDI Customers Care and Electronic Services Department.
Can I get aware of my portfolio without presence in CSDI?
Yes, CSDI has developed a system named IPS via which the investors can apply for membership and use its services right after username and password issuance.(Note: the investors need to offer an email address in order to use this service)
Can a person get the portfolio of the deceased as the representative of their heirs?
If you are the legal representative of the heir and have a letter of attorney from them you can get their portfolio by referring to CSDI Customers Care and Electronic Services Department.
How can I get my dividend?
You can get your dividend in three ways:
Although I have declared the SHEBA number, I haven’t yet received any dividends. What do I have to do?
How do I get the statement of my received dividends?
After applying to your supervisor broker, it sends a letter to CSDI and an accurate statement of your payment is prepared and sent to the broker.
Regarding the fact that I sold my securities before the end of the year-end dividend period, how can I get aware of its daily inter-period dividend?
Calculation and settlement of inter-period dividend is done daily and through your supervisor broker.
Am I eligible to get the dividend although I purchased the securities one day before their due?
Yes, the dividend is paid to the last owner of securities even if they purchased them one day before the due.
How do I get my dividend which is divided by CSDI through the branches of Melli Bank?
Firstly, be sure that your dividend has been paid out by making a call to the issuer or CSDI Customers Care and Electronic Services Director, and then you can get your dividend by referring to all branches of Melli Bank while carrying valid identification documents. Also you are made aware of paying out the dividend by SMS if you have already declared your cellular number.
If you encounter a problem getting the dividends through branches of Melli Bank, make a call to CSDI Customers Care and Electronic Services Director so that the required measures are taken to solve the problem.
I am a stockholder of a company contracting with CSDI, how do I get informed if I am on the list of recipients of dividend?
Get aware of this issue by calling the issuer or CSDI Customers Care and Electronic Services clerks
One of the companies I am a shareholder of has entrusted its capital increase to CSDI. How can I get my capital increase certificate?