KARA is directory of electronic post-trade services for brokers designed by Central Securities Depository of Iran (CSDI). Kara was officially launched in early 2017.
The system primarily aims to materialize goals set as a result of the Electronic Government scheme through providing a sound and secure ground to offer better electronic services to brokerage firms, omit or at least reduce the volume of correspondence and phone calls between CSDI and brokers, and guarantee secure transfer of data such as confidential or proprietary information over a secure channel.
The system comprises of multiple sections including. The relative responsibilities of each section is as follows:
• Gathering information about shareholders
• Validating shareholders' identities
• Having trading accounts issued for both individuals and legal entities
• Delivering dividend distribution reports based on stock symbols
• Delivering dividend distribution reports based on each investor
• Issuing default notice
• Issuing Power of Attorney
• Comprehensive Information Gathering System (CIGS)
• Correspondence Section
• Issuing settlement notice
The best thing about the system is that it has established direct links to multiple organizations which significantly empowers the facility. The organizations to which KARA is liked are as follows:
• Banks (to verify bank accounts provided by brokers)
• National Organization for Civil Registration (to validate shareholder's identity)
• Post-trade system (to access shareholder's information)
• CSDI's internal systems (to facilitate corporate actions)
• Iran Capital Market Governmental Certificate Authority (to boost security and accuracy of information transfer between CSDI and brokerage firms
This all means that the target beneficiaries of the system are Iranian brokerage firms.
KARA has contributed greatly to resolve several outstanding issues of the Iranian capital market players. To name a few, KARA has facilitated and centralized services provided to brokerage firms, downsized the volume of unnecessary correspondence between CSDI and brokers, materialized goals of the electronic government scheme of the country, optimized notification systems to brokers while creating a faster and safer opportunity in dealing with related organization through establishing close contacts and electronic links with them.
In the future, CSDI aims to further tap into KARA's potential and activate IX Reporting System which is a set of reports to all departments at CSDI, separately provided to each department based on their specific needs and requirements, abolish bans on specific investors who have been barred from trade, delivering daily customized settlement and dividend distribution reports to every individual brokerage firm.