In November 2015, Central Securities Depository of Iran (CSDI) officially joined the Interexchange Electronic Union (IEU.)

The IEU is a non-commercial electronic union by the participation of exchanges as legal entities and acts in an electronic infrastructure for the Commonwealth Independent Countries (CIS) and Eastern Europe. It consists of Commodity Exchange of Armenia (Yercomex), Belarusian Universal Commodity Exchange (BUCE), Kazakhstan Commodity Exchanges ICEX and CEX, Kyrgyzstan Commodity Exchange (KUCEX), Ukraine Commodity Exchange (UCEX) and Agricultural Commodity Exchange of Ukraine and two commodity distribution systems from Armenia and Belarus.

In view of the high demand for various products in the markets of IEU members, Iran’s membership in this international union provides a smooth and safe channel for local manufacturers and traders to upgrade their businesses and increase their production and exports and eventually help bolster the capital market.

Central Depository System of Sri Lanka (CDS) hosted the 17th ACG Cross-Training Seminar. The seminar was held from May 11th to 14th in Colombo. There were roughly 105 attendees from 20 countries in this seminar apart from the non-ACG members including HSBC, JP Morgan, Standard Chartered, Deutche Bank, SWIFT, and some representatives from Kenya. The core part of the seminar was the presentations given by the delegates of the different companies attending the seminar.

CSDI by having four presenters in the seminar got the first rank in terms of the number of presenters among the participants. Mr. Mohammad Sajjad Siahkarzadeh, CSDI Planning and Development Director, Mr. Farhad Morsali, CSDI International Relations Director, Ms. Farzaneh Yari, CSDI Legal Affairs Assistant Director, Mr. Payam Ouskoie, CSDI Issuers’ Affairs Expert, and Ms. Behnaz Hosseini, CSDI Stockholders’ Operation Expert deputized for CSDI in this seminar. The presentations of CSDI delegates included “How CSDI Manages Emerging Risks”, “An Overview of Funds in Iran”, “Legal Infrastructure of Iran Capital Market”, and “Corporate Benefit Distribution”.

The ACG Cross Training Seminar is a conference hosted by an ACG Member which is basically planned and managed by the host Member and Task Forces. The Event has been held annually for 16 consecutive years since 1999, for the purpose of facilitating exchange of information among working level attendees of ACG member institutions. The 16th Seminar was hosted by Central Securities Depository of Iran (CSDI). In a two-day Conference, the host and the Task Forces had the sessions.

This time, Risk & Recovery Management Task Force joined newly as the fifth Task Force. In addition, non-ACG members including custodians were officially invited to the seminar for the first time. New Task Force, new members and wide variety of topics activated the Seminar more and more. In this seminar, there were over 60 attendees from almost 17 countries. The attendees in these two days had numerous programs varying from diverse presentations, panel discussions, breakout sessions, and cultural and sports programs. On behalf of CSDI, there were four presentations and the CSDI delegates were also present in the breakout sessions.

CSDI's team including Dr. Hossein Mohammadi, CSDI CEO Senior consultant, and Mr. Bahador Bijani, CEO's consultant, headed by CSDI's CEO, Mr. Hamed Soltaninejad, attended ACG 18th General Meeting in Xian, China. During this event, apart from the prescheduled programs, CSDI's team had some meetings with their foreign counterparts attending ACG 18th General Meeting. In these meetings, the topics of mutual cooperation, cementing bilateral relationships, and potential future programs were probed into at the meetings in Xian.

To fulfill one of the long term programs in the vision of CSDI, the representatives of CSDI had a business trip to the Republic of Belarus to attend a meeting organized by the Belarusian CSD. On behalf of CSDI, Dr. Hossein Mohammadi and Mr. Bahador Bijani attended the meeting in which the high-ranking figures of the capital market of Belarus were persent. In addition to the meeting in the Belarusian CSD, CSDI delegates had a short meeting and visit to the Currency and Stock Market of Belarus and there they talked about the extension of mutual working relations between both capital markets.

To make this visit even more practical, CSDI organized and held a meeting with Dmitry Kolstov, the Counselor of the Belarusian Embassy in the Islamic republic of Iran. The meeting was held in CSDI’s headquarters and the attendees were serious about the facilitation of their bilateral relations in the future. There were some presentations on the basic business of CSDI in this meeting and then the attendees exchanged some questions to shed light on their real collaboration.

In the end, both sides decided to hold some more meetings either in Iran or in Belarus to come to more common grounds in their bilateral cooperation and collaboration.

Dr. Hossein Mohammadi and Mr. Bahador Bijani, on behalf of CSDI attended a meeting in Belarus to talk about the practical stages of mutually cooperative plan between Iran and the Republic of Belarus. CSDI representatives had two significant meetings with the representatives of Belarusian Universal Commodity Exchange (BUCE) there. Following this meeting, CSDI and BUCE had three meetings in Iran in February 2015. The first meeting was actually held in CSDI headquarters and was attended by Mr. Arkady Salikov, Chairman of Belarusian Universal Commodity Exchange, Mr. Uladzimir Torchyk, Strategic Development Director of Belarusian Universal Commodity Exchange, Mr. Hamed Soltani-nejad, CSDI President and CEO, Mr. Mohsen Khodabakhsh,CSDI Securities and Mercantile Settlement Director, Mr. Farhad Morsali, International Relations Director, Mr. Adibikhoo, and Mr. Amin Afsahi, IME representatives.

The second meeting was held in Kish Island in Iran and the BUCE representatives paid some visits to the warehouses there and then had one meeting with the CEO and President of CSDI, Mr. Hamed Soltaninejad, and other CSDI delegates. The second meeting was attended by the BUCE representatives, CSDI CEO and President, and IME Managing Director, Dr. Hossein Panahian.

This set of meeting was mainly oriented toward very practical and feasible areas of mutual cooperation among the entities involved in the bilateral and collaborative projects.

Following the articles of the MOU signed by Korea Securities Depository (KSD) and Central Securities Depository of Iran (CSDI) and also following the joint workshops organized by the two companies, KSD organized the third joint workshop in the headquarters of KSD from March 31st to April 2nd, 2015. There were diverse programs during this workshop varying from presentations to meetings with different Korean capital market entities. On behalf of CSDI, there were two presentations in this workshop, Dr. Hossein Mohammadi, CSDI CEO Senior Consultant, very briefly talked about the history of CSDI-KSD bilateral cooperation and focused on the points of mutual interest. Mrs. Motahareh Moravvej, issuers’ affairs director, collaboratively with Mr. Mohsen Khodabakhsh, securities and commodities settlement director, presented Settlement Guarantee Fund (SGF).

Based on the words exchanged in the meetings, both parties unanimously agreed to:

  1. Hold their next joint workshop in Iran with the attendance and cooperation of other active practitioners of the capital markets of Iran and Korea in the form of a conference or seminar
  2. Have both CSDI and KSD work hand in hand in earnest on the true practice of linkage
  3. More common grounds are studied until the next workshop by two parties
  4. The essential circumstances related to the fulfillment of the agreement are to be prepared

Mr. Soltaninejad, President& CEO, accompanied with Dr. Mohammadi, the senior consulatnt of CEO, represented CSDI in World Forum of CSDs (WFC-2015) held on 19-22 May, 2015 in Cancun, Mexico.

On the sideline of this conference, CSDI delegates had several meetings with their international peers such as: delegates of National Settlement Depository (NSD) of Russia, National Securities Depository Limited of India (NSDL), Central Securities Depository of Kazakhstan (CSDK) and alike.

Federation of Euro-Asian Stock Exchange (FEAS) 20th Annual Meeting was held on November 20-19th in Zagreb, which was hosted by Zagreb Stock Exchange. On behalf of CSDI, Dr. Ibrahim Enayat, Vice-President of the Board of Directors of CSDI, Dr. Hossein Mohammadi, CSDI CEO Senior Consultant, and Mr. Bahador Bijani, CSDI CEO Consultant took an active part in this event. At this meeting, new management and executive board members were elected by the members of FEAS. Tehran Stock Exchange was elected as one of the executive members of FEAS. The main topic of this meeting and also of the presentations was on IT, computer systems, and also restructuring in the management body of FEAS. CSDI team had some meetings on the sidelines of this event to get the most out of this event. The most significant one was the meeting with Central Depository and Clearing Company (SKDD).

Following the minutes of the bilateral MOU signed between CSDI and Muscat Clearing Depository (MCD) in May 2014, MCD hosted and organized the first joint workshop in Muscat from February 24th to February 26th, 2015. One of the major elements highlighted in the bilateral MOU was the exchange of information and sharing knowledge between the parties, as a result, MCD and CSDI came to the decision to have the first joint workshop in Muscat. Over the workshop, the delegates from MCD had four presentations on the principal business and system functions of the company and the delegates from CSDI had two presentations on one of the most significant ongoing businesses and also on one of the future programs of the company. On behalf of CSDI, Mr. Hamed Soltaninejad, Dr. Hossein Mohammadi, and Mr. Bahador Bijani attended this workshop. On the sidelines of this workshop, MCD organized some meetings with the high-ranking figures of Omani capital market. The representatives from CSDI had two meetings with Mr. H.E.Abdullah bin Salim Al Salmi, the President of the Capital Market Authority Sultanate of Oman, and Director General of Muscat Securities Market, Mr. Ahmed Bin Saleh Al-Marhoon. In these meetings, the attendees had some discussions on the mutual collaboration of the Iranian capital market and the Omani capital market.

At the end of the workshop, in addition to some agreements on some future mutual projects, both parties concurred to have their second joint workshop in Iran hosted by CSDI.

Incenatge CEO, Mr. Huber, and Mr. Majid Jalilzadeh, Incentage Iran Business Development Manager, attended CSDI headquarters for having bilateral and mutual negotiations and meetings with CSDI CEO, Mr. Hamed Soltaninejad, CSDI CEO Senior Consultant, Dr. Hossein Mohammadi, and some other top managers. During these two days, there were some presentations made by both Incentage and CSDI.

The Ambassador of Norway in Iran, Ms. Aus Lise Norheim, and the first secretary, Mr. Thomas Bruusgard Hogseth, attended CSDI headquarters so as to have bilateral mutual negotiations and meetings with CSDI President and CEO, Mr. Hamed Soltaninejad, and some other high-ranking directors. During a six-hour talk, the common grounds in two countries’ stock markets, practical ways to future cooperation, and alike were discussed.

In the end, it was decided by the parties to hold more meetings to talk about more practical stages of mutual cooperation.

Following the articles of the MOU signed by Central Securities Depository of Iran (CSDI) and Korea Securities Depository (KSD) and also following the first joint workshop organized by KSD last spring, CSDI and KSD had their second joint workshop in the headquarters of CSDI from September 13th to 15th. In fact CSDI organized this workshop during which CSDI team had six presentations and two presentations were made by KSD team. The areas touched upon over this workshop were mainly on the major functions and business of CSDI and its prospective cooperative horizon with KSD. To name but a few of the presentations, we can refer to “Iran’s Energy Exchange”, “CSDI Risk Management Profile”, “Net-clear System: Model and Business”, “CSDI Corporate Actions”, “Legal Infrastructure of Iran”, “KSD and CSDI: Mutual Cooperation” by CSDI team and “KSD’s Securities Lending and Borrowing and Fund Net” by KSD team.

On the afternoon of the first day of the workshop, the Chairman of KSD, Dr. Jaehoon Yoo, delivered a comprehensive lecture with the topic of “Korea’s Model for the Development of Capital Market» in CSDI headquarters. The lecture was attended by some top-figures of Iran’s capital market.

In addition, there were plenty of programs on the sidelines of this workshop. The former President of Iran’s Securities and Exchange Organization (SEO), Dr. Ali Salehabadi, and the Ambassador of The Republic of Korea in Tehran, Mr. Song, Woong-Yeob were invited to a dinner session organized by CSDI. At this dinner session, both Korean and Iranian attendees came to a fruitful conclusion regarding their mutual cooperation.

The President and CEO of CSDI, Mr. Hamed Soltaninejad, and Dr. Jaehoon Yoo paid some visits to a couple of significant organizations such as Iran National Development Fund and Social Securities Investment Company, Tehran Stock Exchange (TSE), Iran Farabourse, and Iran Mercantile Exchange (IME) to further delve into their mutual and bilateral cooperation in the near future.

In the end, both parties reached this conclusion that CSDI and KSD have gotten into very feasible and practical steps concerning their working together and agreed on the point that the third joint workshop will be held in Seoul, Korea.

CSDI signed an MOU with PT Kliring Penjaminan Efek Indonesia (KPEI) in 2013 and as a result, sixteen delegates, including the commissioners, senior directors and staff members, from three companies from Indonesia named KPEI, KSEI, and Sigma had a visit to Tehran and specifically to CSDI so as to take part in the first joint workshop organized by CSDI.

During this two-day workshop, the CSDI team had several presentations for the Indonesian attendees. In the end, both parties decided to have some joint ventures and more joint workshops on the contents of their collaborative projects.

On the sidelines of FEAS Annual Meetings in Zagreb, Croatia, CSDI’s delegations had a meeting with the high-ranking managers of Central Depository and Clearing Company (SKDD) of Croatia in Zagreb on November 20th in the headquarters of SKKD. The attendees from CSDI included Dr. Ibrahim Enayat, Vice- President of the Board of Directors of CSDI, Dr. Hossein Mohammadi, CSDI CEO Senior Consultant, and Mr. Bahador Bijani, CSDI CEO Consultant. Ms. Vesna Zivkovic, President of the Management Board, Mr. Stjepko Cicak, Member of the Management Board, Ms. Tina Ugljestic, Managing Director of the Securities Operations Department, and Mr. Ivan Sobin, Managing Director of the Legal Department attended the meeting on behalf of SKDD.

Ms. Vesna Zivkovic pointed out that Croatia joined European Union last year and this is a very good opportunity for the linkage of Iran’s capital market to the capital markets of the European countries. Adverting to the commonalities between Iran and Croatia, she added that Croatia can be the gate to the market of Europe. She went on to talk about their decision to launch the energy exchange of Croatia in the near future and maintained that Iran can contribute to this idea since Iran has been quite successful in launching the energy exchange. In the end, both parties decided to have more meetings in the future to consider more details on their potential cooperation.

As two of the most significant components of strategic management, corporate finance and management, mergers and acquisitions (M&A) in fact copes with buying, selling, dividing, and combining different companies and similar entities helping an enterprise to grow post-haste in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture. Having realized this important fact, CSDI with the collaboration Iran Financial Center (IFC) held a comprehensive seminar entitled Mergers and Acquisitions: Opportunities and Challenges, focusing on the true nature of M& A and its implications and some concrete examples of success and fiasco on February 16th, 2015, in the headquarters of CSDI.

In fact, the preliminary activities for this seminar started in late September 2014. The Planning and Research Department in CSDI with IFC held some meetings with the professional experts in this area to get some useful points to hold the seminar well. There were two committees in the body of the seminar organizers named Steering Committee and Scientific Board. There was a call-for-paper announcement nationwide so that people interested could send their articles to the seminar. This feature added an academic ambience to the seminar. The Scientific Board was responsible to evaluate the articles sent to the seminar and in the aggregate, thirty articles were sent to the seminar and out of them fifteen articles were chosen by the Scientific Board. The Steering Committee had oversight of main preparations and organization of the seminar.

Mr. Soltaninejad, President and CEO, addressed the inaugural speech explaining the quiddity of merging and acquisition and its importance. He mentioned this fact that merging and acquisition process is not only a financial topic but also an interdisciplinary one because in addition to property and debt, social and psychological points play crucial roles.

Furthermore, he pointed at challenges and limitations and gave some concrete examples describing successful and unsuccessful experiences regarding merging huge companies such as Renault and Nissan.

In the end, mentioning the group eleven including important countries such as Iran, Turkey, and Pakistan, he stated that Iran enjoys excellent potential to absorb foreigner companies for merging. This opportunity should be used to improve the trading situation in Iran.

The seminar generally encompassed the following fields:

  1. Financial and Taxing Topics and Valuing M&A
  2. Financial Engineering in M&A
  3. Legal Principles in M&A
  4. M&A Risk Discovery and Management
  5. The Role of SEO and other Capital Market in M&A in Iran’s Capital Market

Some top managers of Iran’s capital market including Mr. Hamed Soltaninejad, CSDI President& CEO, Mr. Ali Hosseini, Iranian Energy Exchange Managing Director, and Mr. Ali Naghavi, IFC CEO, made some keynote remarks on the topic. Mr. Hamed Soltaninejad, as the President& CEO of CSDI had a lecture on the true concept of M&A and how this act can bring about advantageous points for both sides.

Finally, in unison it was decided that the next year’s seminar on M&A will be held in international scope with oversea individuals or entities participating in it.