FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
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.
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 109 for the Iran country report.
CONTACT INFORMATION
Contact Name Mr. Alireza Hajinorouzi E-mail [email protected], [email protected]
Website www.csdiran.com Address 14, Azhari St., Hafez Ave., Tehran 1134844413
Phone +9821 667 49 180 Fax +9821 667 49 257
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