TEHRAN, Iran, October 3. Reform of capital market structure law and establishment of a new center for portfolio management has been discussed in Iran’s Securities & Exchange Council, a capital market expert Fardin Aghabozorgi told Trend.
Shareholders and stock companies have directly asked the council to form a center for portfolio management, he said adding that growth in the capital market should be adaptable to the number of self-regulating organizations to help the consistency and dynamic of the market.
Aghabozorgi pointed out that the Securities and Exchange Organization should consult stock brokers, investment organizations, shareholders and portfolio management centers in order to make a decision for the capital market.
He underlined that representatives of stock companies officially requested the establishment of a center last year however the Securities and Exchange Organization has not responded so far.
The Securities and Exchange Organization should not only be representative of major shareholders, but the stock exchange commission should also protect the interests of small shareholders, he stressed.
According to the expert, the lack of infrastructure for self-regulating organizations creates challenges for Iran’s capital market.
The head of the Securities and Exchange Organization Majid Eshghi has recently submitted a letter to the First Vice President about eight challenges that affect the capital market.
The challenges that affected the capital market include the increase in bank interest rate, increase in the price of feed, state pricing of industrial products, fluctuation of the foreign exchange rate, allocation of automaker companies, power and gas outages, and decision-making for export companies.
