The High Council of Securities and Exchange, the main capital market policy-making body, has given the agreement in principle to set up an international equities exchange.
This was announced by the Economy Minister Ehsan Khandouzi and Majid Eshqi, managing director of Securities and Exchange Organization (SEO).
In a Twitter note, Khandouzi said the planned bourse would use foreign currency for financial needs and would be set up in one of the free economic zones in the country.
“The international bourse will help foreign investment into the country,” he hoped.
In the same vein, Eshqi on Wednesday confirmed the bourse council’s go-ahead to launch the new exchange. The regulator will soon announce a timeline for potential stakeholders to proceed with establishing the new market, he told a press meeting, Shada.ir reported.
The High Council of Free Trade Zones and Special Economic Zones will reportedly be in charge of preparing the groundwork for the bourse.
In the recent past, officials said the equities exchange will likely be based in Kish Island Free Trade Zone off the Persian Gulf.
The aim is to attract foreign investment, help link the sanction-hit economy Iran to global markets and create the conditions to promote export. Domestic and foreign investors will be present in the new market, but details are not available.
The SEO has made known plans to extend the international frontiers of the capital market and boost interaction with foreign investors.
While the scheme is aimed to attract non-rial financial resources, there is skepticism about the practicability of such plans due to the tough US economic sanctions, namely on the key banking, insurance and financial sectors.
The new exchange will be Iran’s fifth after the Tehran Stock Exchange, Iran Fara Bourse (the junior equity market), Iran Energy Exchange (IRENEX) and the Iran Mercantile Exchange.
