Banks to Use Justice Shares as Collateral for Loans: HCSE
EghtesadOnline: Banks will start issuing credit cards for owners of the so-called Justice Shares in the coming week, using the shares as collateral, a member of the High Council Securities and Exchange said.
Justice Shares are shares of government-owned companies that were given free to the six lowest income deciles almost a decade ago. Shareholders were not allowed to sell the shares until last May.
Hossein Selahvarzi said by collateralizing Justice Shares “shareholders will not be compelled to sell their shares,” in haste, IRNA quoted him as saying.
He added that the move should help check possible volatility in the bourse by preventing oversupply of shares.
With the new measure shareholders will be eligible for receiving credit up to 60% of the value of their Justice Shares portfolio.
The government has urged the people not to rush in selling their shares whose real market value is yet to be determined.
Trade in Justice Shares started officially on May 26, with shareholders allowed to place sale orders for 30% of shares in their portfolio in the initial stage.
More than 49 million Iranians have Justice Shares.
Justice Share portfolio includes 49 state-owned companies in the auto, metal, mining, and agriculture, petrochemical and banking sectors.