EghtesadOnline: The Securities and Exchange Organization, the stock market regulator, announced new caps for investment funds operating in the stock market.
The ceiling is set at 500 trillion rials ($2 billion) up from the previous 300 trillion rials giving the funds more operative leeway.
New rules were passed by the High Council of Securities and Exchange, the top stock market policymaker, in mid-November, the SEO news website SENA reported.
With the obvious aim of propping up the sluggish share market and boost the demand side, fixed income investment funds are henceforth obliged to invest 50% of their resources in Justice Shares.
Justice Shares are shares of government-owned companies that were given free to the six lowest income deciles 15 years ago. Shareholders were not allowed to sell the shares until last May.
Justice Shares are owned by an estimated 50 million Iranians largely from the middle and lower end of the economic ladder. Analysts blame the excessive supply of Justice Shares by shareholders for the bearish trend of the once lucrative market that started in mid-August and “has yet to get back to ride high,” market observers say.
Caption: Fixed income investment funds are henceforth obliged to invest 50% of their resources in Justice Shares.