FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2011
CSDI CENTRAL SECURITIES DEPOSITORY OF IRAN
Alireza Hajinorouzi
CEO
Objectives:
The objectives for which the company is
established are:
1– Opening and custody of funds/securities
accounts related to stock exchange, over the
counter market, commodity exchange
belonging to brokers, shareholders and other
financial institutions, real or legal persons.
2– Registration, encoding, custody, clearing
and settlement of trade transactions on stock
exchange, commodity exchange and other
financial tools
3– Depositing different kind of securities in
company’s operating system
4 – Depositing Pledged securities for real and
legal entities and release of the pledge on the
beneficiaries demands
5– Borrowing, lending and exchange of
securities as a mediator
6– Providing and performing latest essential
information for shareholders and brokers
7– Applying suitable electronic systems on
clearing and settlements
8– Handling corporate actions for joint stock
companies including:
A– Registration and custody of shareholders’
names and records and give necessary
services to the issuers of securities
B– Prepare and present necessary
information to the listed companies and their
shareholders
C– Holding general meetings for member
companies and over the counter (OTC)
market companies
D– Receiving information about general
meetings and informing their investors
E– Receiving information about dividend,
bonus share, right issues and deliver these
information to the shareholders
9– Settlement of funds, Clearing and
Depositing of the foreign securities
Our objective is to guarantee the security
and efficiency of Iran’s stock market
through developing and improving the
settlement procedure of the securities
trades via concentrating on increasing the
efficiency and reducing the risk and costs.
10– Presenting professional necessary
services to stock exchanges, over the counter
market, commodity exchange, the issuer of
securities, brokers and other market
participants
11– Providing necessary authorized financial
activities also services, consulting and
commercial activities in relation with stock
exchange, commodity exchange and over the
counter market
12– Cooperating with regional exchanges and
related institutions
13– Changing the method of settlement from
the current semi mechanized system to a full
mechanized, efficient system through using
Real Time Gross Settlement (RTGS)
14– Establishing and managing settlement
guarantee funds, also accepting the role of
CCP
15– Providing warehouses and managing
their activities for better performance of
commodity exchange services
16– and regulation – Performing other duties
which have been or shall be assigned to the
company by law
Future Outlook
1. In order to elevate the Capital Market's
position in Iran's economy and organize
Securities Market, according to Act No. 90 of
the fifth development plan, all post-trade
services of Iran commodities exchange
including cash market, advance purchase,
credit also futures and option contracts (which
will operate in the commodities exchange in
near future), will all be centralized in Central
Securities Depository of Iran (CSDI).
2. To increase the efficiency and Straight
Through Processing of various post-trade
services, Central Securities Depository of Iran
is determined to perform the settlement
registry and Corporate Actions on a fully
electronic and dematerialized basis.
CONTACT INFORMATION
Contact Name Mr. Alireza Hajinorouzi E-mail info@csdiran.com, intl.affairs@csdiran.com
Website www.csdiran.com Address 14, Azhari St., Hafez Ave., Tehran 1134844413
Phone +9821 667 49 180 Fax +9821 667 49 257
PAGE 134
AFFILIATE MEMBER
3. CSDI has a pervasive plan under
construction on Data Dissemination to provide
members and market activists with required
information and reports; aiming at facilitating
Mobile Trading, Online Trading, and Virtual
Trading, the first phase of which has been
delivered for online trades.
4. In order to increase functionality and
eliminate risks of settlement and operations,
CSDI has decided to establish "Professional
Bank of Capital Market", in which Settlement
of Trades, various Financial Tools and
Corporate Actions Affairs will all be performed.
5. Due to the ever-increasing growth of
financial markets followed by an increase in
the activities of its fundamental institutions,
CSDI intends to acquire a pervasive Software
(entrusted to a contractor), to cover the post-
trade services of markets in which CSDI is
responsible for their Settlement.
6. CSDI which is responsible for clearing &
settlement of Tehran Stock Exchange (TSE)
and OTC trades, in order to cover settlement
risks, has proposed the guarantee fund
scheme which will be indispensable after
approval of legal authorities. Also CSDI is
ready to generalize the guarantee fund to the
commodities stock exchange.
7. In addition to the settlement guarantee
fund, CSDI will examine feasibility of using
other risk management mechanisms and
handling clearing members' default to
optimize risk covering mechanisms as well as
moving towards becoming a CCP.
8. CSDI is a major shareholder of "Central
Asset Management of Capital Market
Company" (private joint stock co.) which has
been established in the current year. Executive
actions of this company in delivering activities
of intermediary institutions for financing
through Islamic financial tools (Sukuk) will
begin the next year.
* Please refer to page 117 for the Iran country report.