CSDI Facilitates the Presence of Foreign Investors in the Iranian Capital Market

CSDI Facilitates the Presence of Foreign Investors in the Iranian Capital Markets

“CSDI is planning to deploy a model to alleviate the concern of international investors for the brokers` settlement risk and help more attract foreign capital”, said the Vice-Chairman International & Foreign Investment Affairs of Securities and Exchange Organization.

Dr. Bahador Bijani announced “A 140 percent increase in the foreign investment portfolio after the Iran`s Joint Plan of Action in April 2015. Since the implementation of the deal for joint action in January 2015 till 22 August, we have witnessed a meaningful increase in the attention paid by foreign investors to the Iranian Capital Markets so that there has been an increase equal to 140 percent in the value of foreign investment portfolio”.

He continued, after the deal, our interactions with different countries capital markets entities like the regulators, exchanges and other financial institutions has increased. For example, our interactions with the regulator of the capital markets, insurance and banking system of Germany is underway and we will have good news in this regard soon.

Dr. Bijani in a response to the question of which industries have foreign investors entered in Iran added, “Chemicals, Basic Metals and Petrochemicals are among these industries and Islamic Treasury Bills have also been among the popular financial instruments”. He also mentioned about a plan in CSDI that will facilitate the presence of foreign investors and eliminates one of the market risks. This plan is prepared with the cooperation of the SEO. “We will provide special facilities for large foreign investors to eliminate their concern for brokers` settlement risk and help increase foreign capital attraction”. “Of course this mechanism will be optional and not compulsory” He added.

Dr. Bahador Bijani also said that “One of the good events after the joint plan of action for the Iranian Financial Markets has been the membership of the SEO in the International Organization of Securities Commissions, IOSCO. This has had a very positive impact in the attraction of foreign investment, for one of the main objectives of the organization is the preservation of investors` rights”. IOSCO makes the investors sure that the international principle set by this organization are observed in Iran as a member.

Release Date: 9/4/2016

Back To List