The securities and exchange organization is determined to reactivate its financial diplomacy as soon as the sanctions are lifted, said Mohammad Fetanat, head of Iran's Securities & Exchange Organization. The Investment market and trade reform bill is in the final stages of revision before going to the Parliament, he said.
"Revising the decade-old capital market law is crucial if we want sustainable attention from foreign investors in Iranian markets in the same way as we feel the urgency of expanding domestic financial markets," he was quoted as saying by the Securities and Exchange News Agency.
The ISEO and the Majlis Economic Commission are working to make the necessary changes and additions to the original capital market investment law. "We are also discussing ways to improve the capital market's role in the economy and in the next development plan (2016-21)," he said.
Iran's trade law is almost a century old while the trade law reform bill has been ignored throughout the years, according to the official. The regulations related to joint stock companies, specifically those related to the publicly-held firms, need upgrading in order to be made compatible with modern international trade regulations, the ISEO head added.
Fetanat said one of the appealing parts of Iran's market for foreign investors is the Sokuk market and on top of that the Islamic treasury bills. Treasury bills worth 50 trillion rials will be issued gradually before the fiscal year is out (March 19) and "a secondary market for them will be established in the future".
