EghtesadOnline: Head of the Supreme Council of Iran Free Trade Zones announced on Monday a plan to start an international stock exchange in the FTZs in the coming months.
According to Morteza Bank, the international bourse will open during the Ten-Day Dawn festivities – the annual occasion (Feb. 1-11) marking the anniversary of the 1979 Islamic Revolution, IBENA reported.
The new market is supposed to be based in Kish Island (a free trade zone) off the Persian Gulf and will be the fifth bourse after the Tehran Stock Exchange, Iran Fara Bourse (over-the-counter market), Iran Energy Exchange and Iran Mercantile Exchange.
According to Bank the importance of a robust banking system and mechanism for “attracting capitals” is key to expanding the free economic and industrial areas, Financial Tribune reported.
“In the absence of independent banks in the zones, major banking activities will be handled via the international bourse,” he said.
The initiative is expected to boost Iran’s corporate operations overseas and facilitate interaction between domestic and foreign investors.
Attracting foreign investment, facilitating the presence of domestic businesses on the international stage, forging ties between foreign and local investors and fair distribution of capital are mentioned as other goals of the bourse.
It is said that the international bourse will have the ability and capacity to attract non-rial financial resources in the framework of rules of the Securities and Exchange Organization, the Iranian stock market regulator.
Rules for launching the new exchange have been sent to economic commission of the government.
The initial bylaw was first drafted in coordination with the SEO and approved by the High Council of Securities and Exchange. Later the Central Bank of Iran approved the bylaw after modifications.