Iranian Shareholders face Rocky Road ahead

Furthermore, TSE-listed companies’ profits, both in rials and dollars, have disappointedly swerved back to where they were between four and six years ago, respectively. This indicates that these firms are undergoing hard times trying to hit their estimated earnings per share — let alone beating them. Indeed, this is another reason why investors culled their stakes in the TSE in prior months.

In addition, apart from conventional systemic risks that are prevalent in the capital markets, there is one, oddly enough, attributed to the SEO’s actions in the equities market. Although it is an entity exclusively tasked with supervising TSE member companies, its unconventional interventions and interruptions in the affairs of the stock exchange have been met with harsh criticism.

To that point, Ali Sanginian, the head of the Money and Capital Commission at the Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIM), criticized the actions of the SEO and noted, “The supervisory officials are playing on the ground instead of having the role of referee,” according to IBENA, an economic news network on July 11. He further added that “the [Capital] Market Development Fund (CMDF) was established for the [purpose of] market development but currently the fund is utilized for prettifying the [All-Share] Index.”

Sanginian also rebuked the SEO’s supervisory structure for its direct and indirect involvement in formulating equities price trends, misuse of the CMDF, extensive block deals, IPO restrictions, halting trading symbols and other restrictive rules.

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