30 new applications for brokerage

According to the report of Public Relations and International Affairs of Tehran Stock Exchange, Mohammad Hassan Ebrahimi Sarv Olya, in an interview with a reporter of Sada-e Sima news agency, said: 12 years have passed since the last brokerage license was issued and no new license has been issued during this period.

He added: “Based on the increase in competition and innovative ideas, the board of directors of the stock exchange decided to issue a license to establish a brokerage.”.

Ebrahimi Sarvolia said: So far, 30 applications for establishing a brokerage license have been sent to the Exchange Organization, which interviewed 4 companies, and one of these brokerages received an establishment license..

“There are 108 active brokerages in the capital market,” he said. It was decided to break the monopoly and issue a license.

The Deputy Supervisor of the Financial Institutions of the Stock Exchange continued: The instruction on how to issue the required licenses and documents to the general public has been prepared. This instruction has been prepared in two main areas: history of activity and related education..

He said: “Applicants for obtaining a license to establish a brokerage, by studying the instructions, if they have the conditions, can send the documents to the stock exchange organization.”.

Ebrahimi Sarvalia, stating that one of the basic elements for issuing a license is to present a suitable business plan, added: “Our goal is not to increase the number of agencies, but we want agencies to help us in education and culture and by opening more branches in less developed areas.” Make people more familiar with brokerages to encourage them to enter the capital market.

Revocation of the license of financial institutions if they are not active

He stressed that in the past, one of the reasons for not issuing licenses was the issue of supervision: if all financial institutions are not active and do not facilitate the conditions, their licenses will be revoked..

The Deputy Supervisor of Financial Institutions of the Stock Exchange added: “After receiving the license, it monitors the activities of the companies, and in case of violation, the license will be revoked, just as the license of a portfolio company was revoked.”

Ebrahimi Sarvolia added: The minimum capital for establishing a brokerage is 100 billion Tomans and we expect the brokerages to expand their services based on the capital and the profit they receive will not leave this industry..

He said: “Currently, there are no restrictions on issuing licenses to brokerages, and any financial institution, including portfolio managers and brokerages, can apply to the stock exchange organization for issuance of licenses.”.

Regarding the time of receiving the license to establish a brokerage, the Deputy Supervisor of the Financial Institutions of the Exchange added: “In the discussion of issuing a license, such as a portfolio manager, if the documents are complete, we will respond to the company’s request within 2 months.”

Published by: Samad Yousefi