Strange stock market event / 80% of stock exchange managers in stock exchange companies

According to Tejaratnews, according to the rules and regulations of capital market principles, board members of different elements of the stock exchange and their dependents should not have a stock code, and board members of the “Stock Exchange and Securities Organization” do not have the right to simultaneous membership in other institutions and companies.

These laws do not say anything about the simultaneous employment of the members of the Supreme Council of the Stock Exchange, the Energy Exchange, the OTC Exchange, the Commodity Exchange, and so on, and these legal gaps have led us to conclude that; Twenty-five people who are members of the board of directors of different elements of the stock exchange are also present in the board of directors of 68 mostly private companies, of which the activities of 62 companies are directly related to the capital market.

Of course, the number of companies in which the members of the board of directors of different elements of the stock exchange are members is much more than this in the advertisements of the official newspaper. It should be noted that some of these people are market elites and have experience, and without attributing accusations and slander, the question arises who is the person who has capital in the stock market in any way (fund, company, broker, etc.) and is also responsible, his name. If there is no conflict of interest then what is?

Hossein Khazli, a long-time activist in the capital market, explained: “The simultaneous presence of top managers of stock exchange elements in other companies is an issue that exists not only at the level of stock exchange managers but also in the Supreme Council of the stock exchange.” This damage will only be resolved with more information and transparency. In recent years, not a single minutes has come out of the stock market, and we do not know what is proposed in the meetings, but the members who own the financial companies know very well. Now that the capital of 40 to 50 million people is involved in the stock market, the bill to address conflicts of interest or at least the disclosure of conflicting interests is a serious issue that should be on the agenda.

Conflict of interest in the stock market; A bill that arrived late

Conflict of interest is a situation in which the interests of an individual or organization conflict with his or her duties.

Iran’s capital market consists of various elements such as the Exchange and Securities Organization, the Supreme Council of the Stock Exchange, OTC, the Brokers’ Association, etc., for which, apparently, sufficient laws to prevent conflicts of interest have not been written and implemented.

This issue has also been recognized by the Exchange Organization, and for this purpose, the “Capital Markets Prevention and Health Promotion Office of the Exchange and Securities Organization” has prepared a “draft bill for the management of conflict of interest in the stock market” and sent general experts to send expert opinions. Has invited himself.

Although the passage of this bill will be a happy event, with more than three decades of capital market activity, it may be a little late. Especially in the last 10 years, the Iranian stock market has had three rises and subsequently three major declines, and in the same market decline in August 1999, the assets of more than 40 million Iranians have been lost. It is certainly wrong to link all the recent events in the stock market with the issue of conflict of interest, but we will examine examples where it seems that the lack of management of conflict of interest in the market has not been ineffective and probably will not be.

Simultaneous membership of stock exchange managers in 68 companies

Simultaneous employment as one of the examples of conflict of interest will provide the ground for widespread corruption, and unfortunately this problem also exists in the country’s capital market, almost all people who have a low position in the capital market; They are also active in the capital market through their companies, both in the monitoring group and in the executive group.

By examining 25 people who are in different pillars of the stock exchange, including; The Supreme Council of the Stock Exchange, the Exchange and Securities Organization, the Energy Exchange, the Commodity Exchange, the OTC, and the two members of the Board of Directors or senior executives. The capital market has been and will be connected. Of course, mentioning the names of individuals and companies in this report does not in any way imply accusations or attribution of rent and corruption to them; Because many of these people were experts and elites of the stock market who happened to grow in the body of this market and have been appointed to these positions.

But the question that arises here is how do top-tier stock market managers simultaneously manage portfolio companies, fundraisers, funds, brokers, and so on? More importantly, can a person who has capital in the stock market be responsible in some way (for example, companies and…) at the same time? If the name of this ambiguity is not a conflict of interest, then what is?

Source: Farhikhtegan newspaper

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