Plan to Set Up Union of Retail Stock Traders: MP
EghtesadOnline: The Majlis is reviewing a proposal to set up a union for safeguarding the interest of retail investors in the stock market, a deputy speaker of the parliament said.
“The ‘individual shareholders association’ would be created to allow retail investors in the bourse to have a say in decision-making”, Amir-Hossein Ghazizadeh was quoted as saying by IRNA.
Apart from partaking in regulatory decisions, the union could be tasked with improving the financial literacy of individual traders.
Highlighting the need of such a union, the lawmaker said the High Council of Securities and Exchange, the top capital market decision-making body, is usually indifferent toward the interest of retail traders.
He noted that the plan includes allotting funds to the state broadcaster (IRIB) to help promote “the principles of investment in stocks among the public”.
If realized, the measure would be in line with some other steps taken to prop-up the nose-diving market that has lost more than 30% since early August.
Given the unprecedented increase in the number of retail traders in recent months, observers say now is the time to give voice and space to retail investors in decision-making.
Tempted by unprecedented gains in the first few months of the current fiscal year, an unusually large number of novice investors rushed to the market after the government rolled out a red carpet and at regular intervals announced that it would support the bourse come what may.
With market indicators heading downward and retail traders hit hard, many say the ball is in the government’s court and insist that those in charge must rise to the occasion.
In a talk with Mehr News Agency on Friday, one lawmaker accused the government of “abusing the stock market”.
“In cooperation with the main shareholders, the government pushes up its share prices [in state-run listed companies]. After selling the shares it steps back to let share prices plunge,” Hosseinali Haji-Deligani said.