Transparency to improve over Tehran stock exchange!
- As a major concern among capital market practitioners who seek Iran investment opportunities and a huge turn off for foreign investors to enter Iran’s capital market and do business in Iran, the reporting format of nation’s companies should now change to be released based on IFRS to be in line with international counterparts. According to the new approval made by the Securities and Exchange Organization, the first series of companies listed on Tehran stock exchange or IFB which are obliged to present their financial statements based on IFRS were announced which include all banks and listed insurance companies as well as listed companies with more than $272.34 mn in capital.
- Going through many ups and downs, the Cement industry has been among sectors negatively affected by the economic recession, which itself has directly influenced its production and profitability. Besides, the difference between cement COGS and its sales price has also dragged its export amount down. In this regard, an official stated that despite the improper financial conditions among companies and being on the verge of bankruptcy in the first quarter, the new plan on cement supply, i.e. keeping cement supply not to exceed 70% of its demand, strengthened by reducing discounts could save this industry, whose results were nearly tangible in companies financial reports in the second quarter. In other words, while about 70% of companies were in loss in the first quarter, they managed to realize profit during the next 3-month period. In the post sanctions era with demands from foreign investment on participating in investment plans, an increase in foreign sales is expected, which calls for the development and improvement of infrastructures.
- Paying a visit to the Securities and Exchange Organization of Iran, the Judiciary System Representative underlined that preventing and intervening with a correctional attitude is a necessity guaranteeing the transparency of the capital market and encouraging investors, in addition to appreciating what the SEO has done in this area so far. Mr. Olfat also added that market authorities must improve the level of people’s trust in managers of large entities in order to provide them with their money. Referring to the importance of transparency, the head of the SEO also stressed that along the regulatory role, this organization will also focus on prevention and pursuance of crimes.