Authorities are in the process of revising rules to help attract knowledge-based companies to the capital. Mahmoud Goodarzi, the CEO of the Tehran Stock Exchange, said "We are focused on rewriting regulations specifically tailored to facilitate the acceptance of knowledge-based companies into the capital market."
"A company engaged in the production of bioethanol (green fuel) will soon be listed on the bourse. It produces bioethanol from corn starch, a product that increases the octane in gasoline and is environmental-friendly," Goodarzi said.
The revision of regulations is expected to encourage much-needed innovation and economic growth. Efforts are aligned with the goal of creating a transparent and investor-friendly environment in the stock market and upholding the interest of shareholders and stakeholders alike.
One objective is to streamline the process for knowledge-based companies and help them offer shares to the public, ensuring that they meet the necessary requirements and uphold financial reporting norms. With the measures in place, investors can have confidence in the governance and financial transparency of listed companies.
Iran has an estimated 7,000 knowledge-based companies and 1,600 startups. The government has welcomed the entry of startups in the bourse and says it will support them given their inherent role in the economy.
Tap30, a ride hailing app, went public last year. It was announced earlier that the next is Café Bazaar, Iran’s largest Android app store and Filimo, a popular video-on-demand platform. It has been reported that almost 30 startups have applied to join the stock market,
According to the official, the first public joint stock project-based company seeking funding from the capital market is to begin subscription soon.
"The documents for the first public joint-stock project-based company were submitted to the Tehran Stock Exchange last year, and the necessary steps have been taken," Goodarzi said.
He added that the subscription for this company will be conducted through the Tehran Stock Exchange.
On whether project-based companies can provide sufficient reassurance to investors, Goodarzi said, "Project-based companies operate under the supervision of the Securities and Exchange Organization, and companies accepted into the stock market must be subscribed."
Regarding corporate governance as a priority for the stock exchange, Goodarzi said a corporate governance conference will be held on July 4 to introduce corporate governance requirements and transparency in financial reporting for companies. As companies in the stock market must submit 18 types of financial reports annually, the conference will seek to help ensure their compliance.
"When we talk about corporate governance, it means that there is transparency and standardization in risk management, company appointments, audit committees, and other financial information. The main objective of talks on efficient corporate governance should be the protection of the rights of stakeholders, including both big and small shareholders.”
Now there is a “strong focus on quality financial reporting by listed firms while corporate governance is high on the agenda of the companies.”
