Ambiguity in resource and cost performance ‌ “Capital Market Stabilization Fund” ‌

According to the economic correspondent of Fars News Agency, one of the issues that the stock exchange organization and government officials have maneuvered on in the past two years has been the existence of a capital market stabilization fund to support small shareholders.

But in the 20 months that the capital market has fallen into the abyss, only the name of the fund has been heard and no positive effect has been seen from the fund’s resources to support the market, symbols and shareholders.

The micro and real shareholders of the capital market have seen a sharp decline in their capital during this period, and their only solution has been to leave the stock market and enter fixed income funds, banks and, of course, parallel stock markets.

During this period, more than 140 thousand billion tomans have been taken out of the capital market and the current problem of the capital market is the lack of liquidity, which does not allow the value of micro transactions and total transactions in the capital market to increase.

* Box that made more noise than output!

In the meantime, there has been constant talk of a capital market stabilization fund, but the fund’s performance has never been evaluated in terms of how its resources have been used up. In other words, the non-transparency of the market stabilization fund and the uncertainty of how to spend its resources in recent years has been one of the main criticisms of the fund’s management.

In the past year and a half, several amounts have been approved and entered into this fund. In some cases, only news related to the transfer of funds from the National Development Fund to this fund has been published.

For example, Ghazanfari, Chairman of the Board of Directors of the National Development Fund, says: So far, 3,000 billion tomans have been allocated to the capital market. .

* The need for transparency in the operation of the stock exchange support fund

Foroud Bayat, a university lecturer and capital market expert, in an interview with Fars News Agency economic reporter, says about the performance of the capital market stabilization fund: “This fund has been able to perform well in the same way as in Hard capital markets have come to its aid.

He continued by stating that transparency in the fund’s operation can resolve many ambiguities: “If the fund’s trading mechanism and support of the stock exchange become transparent, it can help the capital market a lot in the days when shareholders are waiting for entry.” They have the rights.

* The tax on stock exchange transactions enters the market stabilization fund

In other government decrees, taxes received from trading on the stock exchange should have been paid to the fund. It is unknown at this time what he will do after leaving the post. According to official statistics, shareholders paid 17,000 billion tomans from the tax on stock transfers in the capital market to the government in 1999, which is equivalent to 9% of the total tax collected in 1399. According to these laws, 20,000 billion tomans should have entered this fund in 1999 alone.

Which resources have entered this fund and how these resources have been used are among the issues that must be properly answered by the officials of the stock exchange organization. But the remarkable point is that the mechanisms of this fund are unclear. Many small shareholders who have entered the stock market in the last 20 months and have lost up to 70% of their capital, raise the question of how the fund has performed in recent years and whether the fund is profitable at all. Has it been for small shareholders or not?

* Uncertainty of the role of the market punishment fund in the difficult days of shareholders

Since August 1999, when we have witnessed a sharp decline and unpredictable fluctuations in the market, the role of this fund in stabilizing the market has not been “clear” and the question must be answered, what has stabilized? Therefore, the operation of the fund must be transparent first.

At some point, the stock exchange organization has raised the issue of supporting the stock market, and in this support, a number of key symbols have been considered by law firms and have been in green for a few days, but these symbols, which are also considered market leaders, failed. Save the capital market from this sluggishness and redness of most symbols.

How many symbols have been supported, what the mechanism of this support has been, the purpose of this fund is to support the whole market or the whole market index or to support several symbols are all unanswered questions that the stock exchange organization should answer. Answer

It seems that the stock market treatment these days is not only the capital market stabilization fund, but if the pricing mechanism of products and sales of companies becomes transparent, orderly pricing is left out of the industry, imports and car prices are freed and fluctuations and base volume limits are removed. The market is finding its way and there is no need for monetary support from the stock exchange.

End of message /