Economy, Business And Markets

SEO to Reinvigorate Brokerage Industry

SEO to Reinvigorate Brokerage Industry
SEO to Reinvigorate Brokerage Industry

The Securities and Exchange Organization is contemplating medium and long run plans to reinvigorate the brokerage industry, head of SEO Ali Salehabadi said in a joint meeting with the members of the Securities and Exchange Brokers Association (SEBA).

During the meeting, which was also attended by Mostafa Haghighi Mehmandari, member of the Securities and Exchange High Council, different approaches were discussed to boost the brokerage industry – one of the core priorities of the SEO.

“The brokers had steady development in the past few years,” SEO spokesman stated, adding that the SEO has medium and long term plans to help elevate the quality and quantity of services.

The secretary general of the SEBA outlined its proposals, which consisted of 20 suggestions aimed at giving a boost to the industry.

“After intensive meetings between the board members of SEBA and the industry experts, a proposal was prepared, which addressed the obstacles and limitations pressing the broker industry,” SENA quoted Rohollah Mir Saneie, secretary general of the SEBA as saying.

Initiating tax on the brokerage’s activities at the equity market, applying value added tax on the credits granted to the brokers, parallel monitoring, changing physical documents to the electronic files, presence of some of the brokers at the judiciary organizations, granting trading and/or broker license, incentives to those willing to launch market making funds, extending credit to the buyer of commodities at the Iran Mercantile Exchange (IME), and placing restrictions and enabling monitoring in the banking system are among the top 10 crucial suggestions that sought to help broker industry flourish.

During the meeting, it was agreed that some of the regulations associated with the brokerage industry be reconsidered and modified in order to accelerate brokers’ activities.

Due to the shortage of time, other suggestions will be reviewed at a later meeting. These include, leveraging the trading fees of the trades at the IME, guarantee for the commodities exchange at the IME and Energy Exchange, providing a guideline for brokers trading operations, organizational certificates, training more equity market analysts and dedicating a place for educational purposes or online software.

The SEO is trying to positively impact the equity market by helping brokers, maintaining and modifying regulations, consulting with the administration and other official bodies to tackle the ongoing challenges over the market’s perspective in the next few months.