The Capital Market High Council, the highest decision-making body, on Monday rejected the resignation of Majid Eshqi, head of the Security and Exchange Organization (SEO).
In a statement published by SENA news agency, the council voiced its full support for Eshqi in his efforts to address shareholder concerns and remove the hurdles hampering the market for more than two years.
Local media outlets reported on the resignation of SEO chief. The government's decision not to incorporate SEO-proposed measures in the 2022-23 draft budget was said to be the main reason Eshqi decided to quit.
The SEO proposals largely aimed at supporting the cash-strapped capital market.
The council has promised to make extra efforts in supporting the SEO initiative in collaboration with the government and parliament.
Eshqi was appointed SEO boss by the High Council of Securities and Exchange in October. He replaced Mohammad Ali Dehqan-Dehnavi.
Tehran’s share market has been grappling with a tsunami of capital outflow with most retail investors in the red.
The decline started in the summer of 2020 when the bubble burst and share prices took a drubbing as never before.
Eshqi recently listed eight major challenges in the stock market, namely the rising bank interest rates, negative impact on listed company profit margins due to the jump in energy prices, government-imposed sale prices on goods produced by listed companies and the endless increase in currency rates.
Holding the Iranian National Oil Refining and Distribution Company's trade at the Energy Exchange, divesting shares of major auto companies, stringent rules for export companies without considering national interest plus restricting industries’ access to the power grid during summer have been other impediments.
The official offered some proposals to help address the challenges, including measures to stabilize rates in the interbank market based on previous caps, removing European hub rates in pricing feedstock and energy and the government's controversial pricing policies for listed companies.
The SEO chief urged the government to undertake effective measures to improve transparency in the financial interaction between the government and businesses and finalize its stance on divesting shares of the main auto companies.
