Iran's securities regulator prioritizes capital formation for financial growth


(MENAFN) The Tehran Stock Exchange (TSE) holds a pivotal position as one of Iran's four major stock exchanges, alongside the Iran Mercantile Exchange (IME), Iran Energy Exchange (IRENEX), and Iran’s over-the-counter (OTC) market, known as Iran Fara Bourse (IFB). Majid Eshqi, the Head of Iran’s Securities and Exchange Organization (SEO), highlighted that their current strategic priority is centered on attracting capital and channeling liquidity toward constructive production initiatives.

Speaking at a government and private sector dialogue council meeting, Eshqi identified capital formation as a critical challenge for the economy. He emphasized, “Financing economic projects and directing liquidity towards production is the priority of the Securities and Exchange Organization.” Eshqi pointed out that the most pressing economic challenge in Iran is the negative trend in capital formation over the past decade, estimating it to be lower than the depreciation rate.

Eshqi expressed concern about the potential long-term consequences of this negative trend, warning that it could lead to non-development, depreciation of industries, and overall economic stagnation. He underscored the significance of injecting liquidity into the production sector as a crucial goal. However, Eshqi acknowledged challenges in achieving this objective, with a notable decrease in investor confidence being a key obstacle.

In addressing these challenges, the SEO aims to restore investor trust and confidence, ultimately facilitating the redirection of liquidity toward productive sectors. The organization's focus on capital formation aligns with broader efforts to stimulate economic growth, encourage investment in productive projects, and counteract the negative trajectory observed in recent years.

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