Economy, Business And Markets

First Pharmaceutical Market Maker in Town

First Pharmaceutical Market Maker in TownFirst Pharmaceutical Market Maker in Town

The first market maker or liquidity provider in the Iranian equity market for pharmaceutical industry started operation under Bank Keshavarzi (Bank of Agriculture), after receiving a go-ahead from the Securities and Exchange Organization, SENA reported on Saturday.

Market maker is a fund or individual that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn.

The Arman E’tela Keshavarzi market maker joined the Tehran Stock Exchange as of April 6 in accordance with articles 28 and 7(6) of Securities Act (2005) and article 2 of the act calling for the development of new financial tools and institutions to facilitate the implementation of Article 44 of the Constitution or the Privatization Law.

The fund has been set up in collaboration with Bank Keshavarzi Brokerage Co. as the manager and Arman Investment Bank and E’tela Aborz Investment Co. as the co-founders aiming to to increase market liquidity.

The market maker is responsible for the shares of four companies, E’tela Alborz Investment Co., Tolid Daru Co., Iran Doru Co. and Sobhan Daru Co., the report said.

In light of the potentials and good performance of pharmaceutical companies listed in the TSE last year, the development is expected to attract more investors to buy pharmaceutical shares. This will also reduce the risk of pharma illiquid shares in the market.