Vice Chairman for International Affairs and Foreign Investment at Securities and Exchange Organization of Iran, Dr. BahadorBijani, says “there has been a surge of interest in foreign investment on Iran Capital Market in the post-nuclear deal era,” adding other factors, such as growth in stock market indices and an increasingly active role in promoting International Organization of Securities Commissions (IOSCO).
Having said that, Bijani noted “we are encouraged by figures showing that amid the recent rise in trading activity on the stock market, the share of foreign investors has gone to well over $562 million.” He continued that the figure was three to four times the amount of foreign investment in the same period last year.
Later in his remarks, the SEO senior official hailed the country’s effort in increasing national autonomy and amplifying Iran's international image, in particular through maintaining an active presence in the worldwide association of national securities regulatory commissions (IOSCO) in achieving the status in one year alone.
Bijani then expressed hope that there will be more progress to come in the near future once the country assumes a permanent seat at the International Organization of Securities Commissions (IOSCO).
In response to a question regarding what Foreign Portfolio Investment (FPI) held by foreign investors generally consists of in the country, Bijani said the major share of FPI consists of securities and other financial assets passively held by foreign investors. He went on to say that there is a mix of investment channels comprised of stocks and fixed income securities in a bid to mitigate any potential risk.
The SEO, an associate member of the IOSCO, is expected to become an ordinary member as the international body’s five supervisory members have been weighing Iran’s proposal for a while.
The IOSCO is a global cooperative of securities regulatory agencies that aims to establish and maintain worldwide standards for efficient, orderly and fair markets.
IOSCO’s membership regulates more than 95% of the world's securities markets in more than 115 jurisdictions; securities regulators in emerging markets account for 75% of its ordinary membership.
If Iran becomes an ordinary member it could get its capital market closer to international standards, sending positive signals to global investors.
Release Date: 12/31/2017