Capital market experts have discussed the structure of the newly-established “construction funds” in a gathering held in Tehran at the initiative of Lotus Parsian Investment Bank, the Securities and Exchange News Agency (SENA) reported on Thursday. On the impact of the market makers on the construction funds, Ghasem Mohseni, a board member of the Securities and Exchange Organization (SEO), said that they should only follow regulations. “They are not obliged to buy investment units at the market button, as it is supply and demand that determines the price.” He added, “The market makers should only curb excessive fluctuations and help facilitate liquidation so that the market data can be accessible, helping to reduce the long lines of buyers and sellers.” Projects that have tried to enter the Iran Farabours over the counter market are of different nature each and therefore, Amir Hamouni, managing director of Iran Farabours, said. “The structure of construction funds should be adjusted in order to accommodate various tastes.” Construction funds are a form of a unit investment trust — a type of mutual fund. The first construction fund called “Nasim” entered the Iranian stock market in September 2014.
