In his first meeting with the Managing Directors and Board of Directors of the Securities and Exchange Organization, the Iranian Institutional Investors Association, the Center of Brokers, and the Central Securities Depository of Iran, the Economy Minister emphasized the need to connect Iran with the world’s stock exchanges.
(SHADA: TEHRAN) -- At the meeting Massoud Karbassian expressed satisfaction with the current conditions and calmness of the country's capital market, saying: Exchange rate fluctuations have triggered turbulence in the currency market, but the capital market remains calm.
The Minister of Economy stressed that his first task is to remove the banks' uncommon businesses activities, and so banks should resort to the capital market.
We have not created funds for banks, but companies should act as consortia and form funds, Karbassian added.
Emphasizing that I expect the capital market to play a significant role in financing the development of the country, the Minister of Finance said: According to the law, $3 billion of foreign bonds should be offered, while nothing has offered yet.
He stated that in order to achieve 8% growth, we need to think seriously about the capital market, and added: The development of capital market with an emphasis on the design and engineering of financial and commodity instruments should be pursued to develop the energy market and supply crude oil and petroleum products in the energy exchange.
Pointing out that we have one of the oldest accounting systems in the world, he said: We should take steps such as implementing corporate governance in stock companies, creating opportunities for people's participation with lower interest rates and replacing the stock market, contributing to the transparency of the capital market, coverage of commodity fluctuations risk, financial facilitation in the primary market, enhancing information transparency, strengthening regulatory components, increasing validation agencies, assessing the risk of currency fluctuations and diversifying instruments in the capital market.
The Minister of Economy also emphasized the need to provide electronic services in the stock infrastructure, to connect Iran's stock exchange to the world’s stock exchanges, to strengthen the link of commodity exchange with the customs, and to grant financial and banking facilities to users of commodity exchanges.