Iran

TEHRAN-- Iranian federal government has actually allocated 150 trillion rials (about $394.7 million) to the countrys Capital Market Stabilization and Development Fund (CMSDF) in the spending plan expense for the next Iranian fiscal year 1402 (starts on March 21) to support little shareholders.As Tasnim news agency reported, the federal government has chosen to supply the mentioned fund from the shares of state-owned business to secure small shareholders against the threats of the capital market.Also, in order to enhance the business active in the market, a part of their profit which is assigned to increasing their capital is going to be exempted from tax; this will motivate such business to increase capital and expand their activities.In late October 2022, Irans Securities and Exchange Organization (SEO) revealed a detailed assistance package to encourage activities in the capital market as investors were getting reluctant to invest in the market.One of the major steps considered in this bundle was the insurance coverage of investors capital and dividends over the next Iranian calendar year.Insuring the shares of real entities as much as one billion rials (about $2,625) per individual, issuing subordinated warrants on shares of fixed earnings funds as much as 400 trillion rials (about $1.05 billion), injecting brand-new resources into the marketplace by sovereign funds to buy shares, depositing approximately 50 trillion rials (about $131.2 million) of the resources authorized in the national spending plan expense for the CMSDF, as well as direct and constant coordination, supervision and monitoring of the legal entities active in the capital market, including companies and semi-governmental banks, pension funds and military organizations were among the measures thought about in the discussed assistance package.The bundle likewise worried cooperation between the Central Bank of Iran (CBI) and the Ministry of Finance and Economic Affairs to manage the interest rates.Increasing SEOs direct financial investment in CMSDF, limiting the activities of online marketers, and suspending the underwriting of securities and initial offerings until additional notice were likewise among the issues thought about in SEOs support package.Earlier in February 2022, the federal governments economic coordination headquarters had likewise unveiled an assistance package for the capital market, that included procedures such as minimizing the price of petrochemical feed, decreasing taxes on making companies, specifying new guidelines for the mining sector, increasing the capital of the Stock Market Stabilization Fund, controlling the release of government bonds, and figuring out the currency exchange rate of the banks; but this package, regardless of the temporary positive results, was unable to change the basic pattern of the market and avoid the constant fall of the stock prices.EF/ MA





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