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Government intervention in the capital market must increase transparency


According to Tejarat News, the new head of the Stock Exchange and Securities Organization, in an interview with the national media, said the above: “Government intervention in the markets mainly leads to market deviation. Government intervention means entering the market and making a definite profit is not right.” .

Majid Eshghi by stating that he works by creating stability in Capital Market “One of the ways to stabilize the market is for companies to have long-term returns and profitability,” he said.

He added: “Interference in the production mechanism and the profitability of companies should be minimized so that during the last one to two years, the government has distanced itself from the discussion of intervention in pricing and we are sure that the market will find its way.”

step one; Helping to increase the capital of companies

Eshghi, stating that the main mission of the Exchange and Securities Organization is to equip companies’ resources, continued: “As the first plan, we will take measures to increase capital formation in manufacturing companies and through this new development projects can be implemented; This allows companies to be profitable in the long run; It is necessary for shareholders to buy the shares of companies with a long-term view.

Increased liquidity in the debt market reduces its impact on the stock market

The head of the Exchange and Securities Organization called the development of the debt market another program of the new board of directors and added: “Keep in mind that there are different investors in the market due to different levels of risk-taking.” The first group are shareholders who are interested in buying stocks and buy stocks, and the second group are investors who buy fixed income securities.

He continued: “Shareholders who bought shares do not sell their shares to buy bonds; Because these two markets are different from each other and have their own audiences and actors, although they affect each other.

Majid Eshghi stated: If we develop the debt market with debt instruments and financial institutions and increase the liquidity of securities in the debt market, we will no longer see the impact of this market on the stock market.

Increase the quality and transparency of financial statements

Regarding the transparent flow of information in the capital market, he said: “In the last 10 years, we had a hard time receiving accurate financial reports from companies, but now good things have happened, so that in terms of quantity we have no problem obtaining reports from listed companies; The quality and transparency of the reports is the only issue under discussion, and we have taken good action in this regard.

Eshghi continued: “The Exchange and Securities Organization has taken appropriate measures in this regard, and we are trying to increase the quality of information published by companies admitted to the capital market.”

He said: “If the quality of information increases, the transparency of information will increase, as a result of which investors will be able to make better decisions, because vague information will cause great losses to shareholders.” We hope that this transparency will enable investors to receive information in good time and with good quality.

Source: stamp

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