A comprehensive database of violations that occur in the stock market has been established in Tehran Stock Exchange and is available on a daily and weekly bases, according to TSE’s supervisory manager.
“Tehran Stock Exchange is using Aramis, Nahan, Sanjesh and Bidar regulatory systems, each of which has its own advantages,” Mohammad Reza Shah-Nazari was also quoted as saying by Ebinews.ir.
In order to protect the interests of minority shareholders and ensure market stability, these systems issue regulatory warnings.
Referring to Article 35 of Tehran Stock Exchange’s Law on Investigating Individual Violations and Article 46 of the Law on Market Manipulation that deals with violators at a ceremony marking the first anniversary of Sanjesh system’s launch, the official said about 5,000 surveillance warnings were issued by this system last year.
Shah-Nazari noted that the stock exchange mostly uses the Bidar monitoring system.
“The warning system records all market activities with the assistance of technology management partners of the stock exchange,” he said.
"Another advantage of this system is the announcement of warnings and observations made in case of changes in laws and regulations or the passage of new laws. This is while the previous systems did not have the ability to warn users when market conditions changed, but in the Bidar system, this is possible.”
The Sanjesh system was launched in February 2021 and relays the warnings issued by the Bidar system to the Namak system, the transaction manager, and the online manager.
Shah-Nazari pointed to the approval or disapproval of transactions, especially for symbols that experience a wide swing and said, "According to Article 22, which pertains to executive instructions on how to trade on Tehran Stock Exchange, a 30-minute auction is held at the reopening. And if the transactions are approved by the market monitor, the share trading will be considered closed and if it is not approved, the auction can continue for two days.”
Stocks Stuck in Freefall
After last week's rout, Tehran Stock Exchange started a new week on Saturday with its major market index dropping to a new low since July 3, 2014.
TSE traders seem to be wondering whether summer selloff would continue to push TEDPIX further down or upbeat economic news may shift the market's negative sentiment.
At the end of trading hours on Saturday, TSE’s main index TEDPIX plummeted by 299.1 points or 0.41% to finish another downward trading day at 71,822.4.
According to TSE’s website, the market's main indices spent the day pressing TEDPIX, as the first market index retreated 241.6 points or 0.46% to 52,814.1.
The second market index gave up 455.7 points or 0.32% to 141,897.3. Free floating index slipped 447.2 points or 0.55% to 80,900.6. The industry index inched down 256.6 points or 0.42% to close at 60,811.3. Blue chip index also shed 13.4 points or 0.4% to 3,309.6.
Tehran stocks fell sharply on Saturday, cementing its monthly losses as investors backtracked from regional unrest and the country's ongoing recession on valuation concerns.
TSE's nervous investors eye the latest developments in Iran's nuclear talks, which are expected to lift part of the US-led sanctions against Tehran, which could bring back the bull market. It’s the most crucial factor in changing the negative trend, which has been dominating the market for quite some time.
Since 2010, sanctions have been strengthened after the nuclear dispute between Iran and the West intensified.
The previous Iranian administration successfully rolled back the negative pace of economic growth and stimulated a growth rate of 0.5% in the first three months of the current Iranian year (ended June 21), ex-government spokesman, Mohammad Baqer Nobakht, said in August.
The incumbent government is determined to reinvigorate the national economy, partly through a strategic plan devised to reinforce the capital market, the Securities and Exchange Organization in particular. Besides, the government's plan of action to exit recession is another concrete step to push Iran's economy back to the path of growth.
With the stocks having fallen mostly through the year, the newly released government plans aimed at financing big companies and boosting the capital market appear to have failed to gain investors' trust so far.
