Iran is considering to launch an international stock market in a bid to lure more foreign investment.
“The new stock exchange bylaws have been devised and approved by the Securities and Exchange Organisation,” IRNA cited Morteza Bank, Secretary of the Supreme Council of Iran's Free Trade, Industrial and Special Economic Zone as saying.
The blueprint, that has also been given the green light by the Central Bank of Iran (CBI), is now awaiting to be debated at the government’s economic commission where “we expect it to be approved,”, added Bank, who is also an advisor to Iranian President Hassan Rouhani.
“Should the baylaws be okayed at the economic commission, they won’t face any problems in final approval,” said the official optimistically.
The international stock exchange can finance Iran's projects through shares, according to Morteza Bank.
Should it be functional one day, it will be Iran’s fifth stock market after Tehran Stock Exchange (TSE), Iran Fara Bourse (IFB), Iran Energy Exchange (IRENEX) and Iran Mercantile Exchange. It’s headquarters is expected be based in Kish Island in the Persian Gulf.
Bank said the market will have both domestic and foreign investors, probably English will be its language and that an international bank will be used for financial clearance with an “international oversight”. He didn’t provide further details though.
Iran has been looking for channels to attract foreign investment in a bid to decrease its reliance on its oil exports.
Latest data by World Federation of Exchanges indicates that by November TSE had a market capitalization of $145.66 billion, registering 72.10% growth year-on-year.
The review covered 10 indexes from Africa, 33 from Asia, 41 from Europe, and 16 from Americas.