Corruption in the stock exchange under the skin of market regulation

According to Tejarat News, it was in the middle of July that the plan “to regulate the market of goods subject to supply in commodity exchanges” was published. According to this plan, all matters related to transactions and prices of goods in the stock market and capital market will be assigned to a working group chaired by the Minister of Peace.

After the publication of the text of this plan and the letter of the Chairman of the Stock Exchange Organization to the Speaker of the Parliament and the non-implementation of the government’s opinion of opposing the plan of the Ministry of Industry, the capital market activists and senior experts of the stock market requested the entry of the Commission on Article 90 of the Parliament and analyzed the destructive effects of the implementation of this plan. They paid the plan.

What are the provisions of this plan?

The steel chain, basic metals, gas and petrochemical chain, oil chain, hydrocarbon materials and gas condensates, and petrochemical and refining products are the products of this project.

According to this plan, 100% of the proceeds should be deposited to the special account of the Ministry of Industry, Mines and Trade or the relevant department at the treasury of the country. Determining the base price framework for surplus goods offered in commodity exchanges is under the authority of the working group subject to this law, and all producers of the mentioned goods are required to supply and sell in the commodity exchange based on the approvals of the working group.

The presentation of this plan in the parliament after the cancellation of the final moment of the sale of cars in the commodity exchange and the vacancy of cars in the mandatory goods of this plan has created doubts. In the specific working group, people have been selected in such a way that they do not have any positions from the capital market side. In this plan, the prices are selected and determined by the order of the working group. There is no information about market supply and demand in the plan. The details of the plan are not clear, and the lack of transparency of this plan and the granting of full powers of the plan to a working group are the cause of concern for capital market activists.

The government’s opposition to the plan to regulate the market of goods included in the stock exchange

Mohammad Mokhbar, the first vice president, also announced that the government is against the plan to regulate the market of goods included in commodity exchanges. But the interesting point is that based on the announcement of the members of the parliament, the formation of a working group under the chairmanship of the Minister of Silence has been added to this.

On the other hand, with the opposition of the Cabinet of Ministers, Omid Qalibaf, the spokesperson of the Ministry of Security wrote in a tweet: “With the aim of regulating the market of goods that are offered on the stock exchange. A good plan has been approved by the Parliament’s Industries Commission, which increases transparency while supporting production and the capital market. “The Ministries of Security and Economy are designed in the working group and they take the interests of the stock market into consideration.”

Confrontation of the ministry of silence with the government

Despite these news, it can be said that this plan is to support the minister of silence. The Minister of Industry’s confrontation with the government is not detrimental to the country’s economy and industry. The chairman of the Majlis Industries Commission also confirms this issue.

If this decree and letter is implemented, mandatory pricing will penetrate the entire economy, especially the stock market. On the other hand, the deep stagnation of the capital market and the corruption caused by the mandated pricing will increase.

Experts and analysts say the plan could boost lobbying for the golden signature. In another way, it changes the functioning of the capital market from supply and demand and makes it orderly.

The important point here is that this plan reduces the trust of shareholders towards the stock market and involves the stock market with corruption.