400 symbols were placed under the umbrella of the market development fund – Tejaratnews
According to Tejarat News, Qadir Masoumi Khangah, CEO of Capital Market Development Fund He stated: According to the internal regulations, the Capital Market Development Fund will support the capital market with more power on the days when it is needed. But we are active in the capital market every day and we buy and sell shares based on the portfolio conditions and internal regulations.
He added: In addition, efforts are being made to sell the capital market development fund in blocks, and according to the established criteria, the buyers of the blocks must be legal entities or a portfolio of legal entities. The price of the block is also determined based on the current price of the transactions, and the supervisory body, after performing the matching operation, controls all the conditions of the transaction so that there are no violations.
Masoumi Khanqah further stated: Of course, retail sales may also be done, but retail sales are done when there are heavy shopping queues, and in such cases, a percentage of the shopping queue, in order to help increase the liquidity of the market, Supplied. Of course, the micro-offerings of the market development fund are carried out in such a way that the market is not damaged and sales excitement is not created from the market development fund sales.
How to choose shares for support
The Managing Director of the Capital Market Development Fund said regarding the selection of shares for support: “The internal regulation of the Capital Market Development Fund does not allow entry into any share.” But it is not the case that only a few big and index-making symbols are supported by the market development fund and we ignore other symbols.
He added: According to internal regulations and market conditions, about 390 to 410 market symbols are reviewed daily. The amount of capital market development fund’s support for each symbol also depends on the market value, the float of that share, etc. It is natural that the 50 major market symbols need support in a more specific way, but the buying and selling operations of the market development fund are industry-oriented, and each industry is examined separately, and this separate examination allows us to be active in more symbols. The internal regulations of the market development fund specifically address these issues and do not allow tampering with the fund’s investment manager.
This official further stated: Of course, the market trend has an impact on the fund’s activity and it is natural that in upward trends, more stocks are out of the scope of the fund’s support, and vice versa, in the negative market, more stocks are under the umbrella of the development fund’s support. be placed in the capital market. For this reason, we were more sellers in April; But in May, we were more active on the buying side. In total, this year, the volume of purchases of the capital market development fund has exceeded the volume of sales.
How to provide resources for the capital market development fund
Masoumi Khanqah said in relation to the sources of the Capital Market Development Fund: The funds of this fund are sourced from three sources. The first source of the fund’s resources is the commission of brokerage companies and market institutions, which is deducted 35% daily by the central depository company and deposited into the account of the development fund, and we issue investment units to brokerages and institutions in return.
He added: The second source of resources is the deposit of other unit holders of the capital market development fund, who voluntarily deposit sums into the account of this fund, and in return, we issue units. During the past year, about three stages of depositing and issuing units to other holders have been carried out. Is. The third source is the publishers’ dividend, which is received according to the procedure.
Source: Senate