Economy, Business And Markets

136th Mutual Fund Established

136th Mutual Fund Established
136th Mutual Fund Established

The Securities and Exchange Organization has issued an establishment license for the 136th mutual fund in the country.

The new “Hami” closed-end mutual fund has been successfully underwritten and listed with 500 billion rials ($18.7 million) of capital, according to SENA, the news agency of the Securities and Exchange Organization.

Hami which has been created, and will be managed by Mofid Securities, will only invest in fixed income securities.

Mofid Securities is a leading privately-owned investment advisory, which was ranked first among the brokerages working in the Tehran stock exchange. It is also the largest stock brokerage firm in Iran and was established in 1994.

As a closed-end fund, Hami will issue shares to the public, through an initial public offering (IPO). Its shares will be listed for trading on Iran Fara Bourse (over-the-counter) market. Unlike open-end funds, investors cannot sell their shares back to Hami. Instead, they must sell their shares to other investors in the exchange.

Mutual fund laws are explained in Article 1 of the Law for Development of New Financial Instruments and Institutions, based on the overall policies of the Article 44 of the Constitution, ratified in 2009.