Iran’s CMDSF injects more than USD180M to support market in 1st 4 months

2024-07-23 09:26:52

(MENAFN) Iran's Capital Market Development and Stabilization Fund (CMDSF) has injected over 90 trillion rials (approximately USD180 million) to support the market during the first four months of the current Iranian calendar year (March 20-July 21), as reported by an Iranian news agency. The CMDSF's recent activities included purchasing market shares worth USD180 million, aiming to bolster the stock market and its shareholders.

In June, Alireza Mirmohammad Sadeghi, a member of the National Development Fund (NDF) board of directors, announced plans to deposit USD60 million into the stabilization fund to further support the stock market. He highlighted that, by law, a total of USD510 million from the foreign currency resources of the NDF must be injected into the Stock Market Stabilization Fund. So far, around USD450 million has been provided, with the remaining USD60 million to be supplied in three installments.

Sadeghi emphasized the stock market's potential as one of the most profitable investment avenues. He noted that the National Development Fund, as a significant investor and influential shareholder in the capital market, aims to support the financial market by collaborating with the Securities and Exchange Organization (SEO) to inject resources into the market stabilization fund. This initiative is intended to help the market return to a profitable trajectory.

The allocation of financial resources from the NDF to the CMDSF is part of the government's measures to counteract the downward trend in the stock market. In line with the 13th government's new strategies to improve the stock market, the Government Economic Coordination Headquarters convened a meeting on November 2, 2021, chaired by the late President Ebrahim Raisi. During this meeting, it was decided to inject new resources from the NDF into the CMDSF.

The CMDSF's statute outlines three main sources for its resources: government investment foreseen in the national budget bill, the allocation of one percent of NDF resources, and a portion of the trades commission received by the SEO. These measures aim to stabilize and develop the capital market, ensuring its resilience and profitability in the long term.

MENAFN23072024000045015839ID1108471717

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.