محمدی

Tehran, Feb. 03 (SENA) - Dr. Shapour Mohammadi, attended Thursday evening in Economy Radio’s live broadcast and responded to questions about Capital Market plans. In this show, the host referencing to President Rohani’s unprecedented appreciation of Securities and Exchange Organization, evaluated the Institute of Finance’s performance as a success.

The Head of SEO indicating the profitability of capital market in comparison with other markets during last few years underlined the essential requirements for entering this market. He suggested entering the capital market through the agency of mutual funds for uninformed and unskilled or passive investors which reduces the risk of investment. He continued that both novices and professional investors need to follow the principles of capital market such as long investment horizon. The huge profit in short term couldn’t be expected and it requires 3-5 years to earn profit.

He added the second considerable point in entering the capital market is receiving the trainings and gaining professional expertise. Nowadays there are various training courses in capital market held in different levels. The third principle for successful investment, he added, is avoiding rumors. Otherwise, he recommended finding the latest official news in Codal platform and the statistics and data of the corporations. Dr. Mohammadi stated that building a Portfolio assessment is the fourth principle of investment in capital market. Buying and selling shares is not a good strategy and building a share Portfolio minimizes financial risk of investment resulting from price fluctuation. Another strategy is paying attention to profitability of corporations. The Stock of profitable corporations regardless of no change in the value of share of company appropriates dividend per share (DPS) to shareholders. And his last recommendation was investing a proportion in capital market and the rest in Deposit account or buying fixed income.

The Head of SEO also asserted that Central Bank and SEO work in close collaboration on open market operation and SEO is ready to participate in market operation. As he said, Central Bank made banks participate in open market operation in order to control interest rates or financing rate by trading fixed income or government bonds.

Dr. Mohammadi responded to a question asked by one of the audiences about online application for trading code: Iran implements international Anti-money laundering Laws and also the identity of trader should be clear. To have transparency in who buys and sells in capital market one-time attendance in brokerage to apply for trader code is necessary and they could trade online and easily use the mobile applications.

The Head of SEO about initiating Short Selling and the status of Justice Share answered: Justice Share procedure depends on the cooperation of Privatization Organization with other organizations and the approval of Islamic Consultative Assembly. Also financial institute of capital market has a role in this which needs the accordance of all respected organizations. We have planned and presented necessary methods of privatization of Justice Share which includes ATF funds, transferring Share through provincial corporations and direct transfers. Then he mentioned that Short Selling as there is in western countries is not in accordance with Sharia law and it is impossible to implement it in Iran. But by some changes the confirmation has been given by the Fiqh Council and supreme council of Securities and Exchange.

Dr. Mohammadi about offering Date and Raisin in Mercantile Exchange told the reporter that trading any commodity in Mercantile Exchange or IRENEX needs the constant offering of it. It means some institute should declare its readiness to offer the commodity. We are trying to facilitate the circumstances for suppliers to enter the capital market. If we could resolve the conservation issues, Date and Raisin could be offered in Mercantile Exchange as Pistachio and Saffron.

Regarding offering the crude oil in IRENEX, he explicated that the amount and transport of this commodity is a big issue. However, there are attempts to plan different forms of offering crude oil in Mercantile Exchange and there are some achievements. Generally, IRENEX trade rates, about 44,000t only in this year, are in better condition in comparison with last year which was 14,000t and it will increase by the end of the year.

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