Mutual fund’s unit issuance procedure

by | Feb 3, 2024 | Stock |

In fact, the fund’s unit’s issuance process is very simple and straightforward. On the following chart, you will find everything may be needed.

Who exactly are recognized as foreign investors?

Non-Iranians and Iranians who are living overseas. To be more specific, if the incoming source of capital is not based in the main land, it is considered as “foreign investment” and investors shall go through processes of fund transfer and opening necessary bank accounts for their investment.

Each of the following persons is a foreigner/ foreign entity:

  • An individual person who does not enjoy the Iranian citizenship;
  • Any legal entity that has been registered in a country other than Iran;
  • Any legal entity that has been registered in Iran whereby the total shares of the persons stated in subparagraphs (a) and (b) above in the capital of such entity shall exceed fifty (50%) percent. If the mutual fund is regarded to be a foreign entity, it shall remain to be the same (foreign entity) if the shares of the persons stated in subparagraphs (a) and (b) above in its capital have not reduced to 40%.

What does the phrase “base volume” refer to?

Base Volume means the number of securities of the same type which is to be traded daily so that the total percentage of the spread during the day can serve as a base to determine the price for the following day. This was ratified by the regulatory body, SEO, to control the unreasonable rise in equity prices. The base volume differs for various companies in diverse industries. However, the O.T.C. Market is not restricted to Base Volume.

What does the phrase “trading halt” mean?

A temporary suspension in the trading of a security on one or more exchanges, usually in anticipation of news announcements or to correct an order imbalance. A trading halt may also be imposed for purely regulatory reasons.

In what currency are the TSE and IFB trades denominated?

TSE and IFB trades are denominated in Iranian Rial (IRR). The money is transferred through exchange offices, calculated based on that day’s market spot exchange rate. Due to limitations imposed by international sanctions, it is not possible to electronically transfer money to Iran from abroad.