The attractiveness of the stock market by making it possible to verify shares

According to Iran Economist, the Central Bank wrote in its report: In the 13th government, the Central Bank had a supportive approach to the capital market, unlike previous periods, and in this direction, it has taken significant measures, which, according to experts and capital market activists, have positive effects on the transaction process and prosperity. There is a stock market.

Interbank interest rate control and stability

In the short term, the interbank interest rate transfers the liquidity system to parallel markets, especially the capital market, and the control of this rate by the central bank has always been a concern for capital market activists.

Since the beginning of the 13th government, the central bank has put interest rate control on its agenda in order to support the capital market, and in this case, it has performed very well with interest rate control and stability. In this period, the interbank rate has been completely under control by the Central Bank and so far there has been no fluctuation more than the 21% rate and the desired limit, and just like last year and according to the government’s approval, the interbank rate was set at around 20% and the average of this rate in The length of the year was 20.3, this year this rate will not face much fluctuation and this year the central bank will implement the desired goals related to the control of the interbank rate in order to support the capital market.

Also, in recent months, we have witnessed that this rate was maintained in the desired range and the central bank’s strategy in the supervisory sector and the use of tools such as repo contracts and active and effective presence in the interbank market gave results, and with this method, the central bank set a ceiling on bonds. He created a treasury and a government that made the experience of increasing this rate above 25% not to be repeated as in the past few years, even though we are currently in inflationary conditions like the past few years. This measure has increased the P/E ratio of the capital market by 1.5 to 2 units compared to the same time last year, which is a suitable measure to support the capital market.

Intensification of bank interest rate supervision

According to the past routine, some banks in the area of ​​paying interest to bank deposits using different methods exceeded the allowed limit and gave more interest than the rate approved by the Money and Credit Council in order to attract more resources, and this itself is a factor in diverting cash flow from banks. but in the last one year, the central bank has been able to seriously deal with these violations by increasing the supervision and regulation of laws and preventive policies. This action has been taken in order to support the capital market and control the flow of cash towards the capital market, because the increase in interest on bank deposits creates an attraction to attract money and cash from the stock market to the banks.

In this period, delinquent banks in the field of non-observance of the interest rate on long-term investment deposits are introduced to the banks’ disciplinary board. Based on the circular that has been sent to the banks in this regard, the necessity of strict and complete compliance with the above-mentioned regulations has been emphasized, and the banks and credit institutions violating the above-mentioned interest rates have been told again to comply with the aforementioned regulations; It was reminded that the responsibility for the proper implementation of the notified rules and instructions rests with the board of directors and managing directors of banks and non-banking credit institutions, and it was emphasized that the Central Bank will regularly monitor the compliance with deposit interest rates and deal decisively with cases of violations through the banks’ disciplinary board. Kurd. The introduction of the banks’ board of directors to the disciplinary board has special consequences for the banks, which, according to the conclusion of the disciplinary board, includes a warning to the professional disqualification of the board members.

Increasing the transaction ceiling of stock brokerages

In order to support the capital market, the central bank increased the transaction limit of stock brokers by 10 times with the approval of the central bank’s executive board, a measure that is aimed at facilitating the transfer of money between clients of brokerages and investment funds, reducing the pressure on the trading systems of brokers and increasing the flow of productive capital into The capital market took place.

The 10-fold increase in the transaction limit of stock brokerages will facilitate transactions, which is beneficial to all shareholders, especially small shareholders. Before this decision of the Central Bank, both individuals and legal entities could only pay 50 million tomans daily through electronic payment. Deposit the broker’s account, which was a double burden on the shoulder of the small shareholder. Assuming that the money is in people’s pockets and the stock market is going through its period of prosperity, increasing the ceiling of bank transactions can help attract liquidity.

At the beginning of this year, the 13th government announced a package for access to banking facilities, through which 15 new collateral instruments were considered. This action was done with the aim of giving people more access to banking facilities and facilitating collateral to receive banking services, and one of these tools is the use of stocks as collateral. The possibility of approving shares to receive micro-loans was another measure taken by the central bank to support the capital market and shareholders, and this measure itself is a factor in attracting liquidity to the capital market.

With this action of the central bank, the possibility of validating shares, including equity shares, was provided to receive microloans, and considering that more than 40 million people are shareholders in Iran, and most of these shareholders are related to equity shares, each person has more than 10 million tomans of collateral to receive The loan has at its disposal that this confirmation is created automatically and electronically. The possibility of approving shares to receive micro-loans not only gives more people access to banking facilities; It is also a factor to attract liquidity to the capital market.

Oraq Gam, a successful example of money and capital market cooperation

The launch of Gam Bonds is an important step taken by the Central Bank to support production, and the release of these bonds in the capital market also results in the trading of these bonds in the commodity exchange and capital market participants benefit from the earnings of these bonds. Also, the trading of these bonds in the secondary market and the ability to discount them in this market created conditions so that the capital market actors can use these bonds with more confidence and the production sector also has the right tools for its financing.

The main basis for issuing Gam bonds is to help companies. Manufacturing companies need liquidity to carry out their operations, projects and programs, and manufacturers always had the concern of not being able to provide liquidity to purchase raw materials, and sometimes the lack of financial resources to supply raw materials in production units would reduce their production, profitability, and productivity, which As a result, we would face a shortage of that product in the market, which would also harm the people. The Gam tool was launched by the central bank and the important thing about it is the guarantee and bank credit as the support of these bonds.

In the next step, the action that has been taken is to involve the capital market in Gam bonds, which allows these bonds to be traded in the capital market and financing is done through people’s deposits, without putting pressure on the banking system to finance producers.

Other actions of the central bank in this area

Among the important measures that have been taken by the Central Bank during this period to support the capital market are the control of interbank interest rates, the 80% reduction in the transfer tax in the capital market, which is awaiting approval, and the increase in the transfer limit with stock brokerages. which increases the speed of transactions in the capital market.

Also, the first step that has been taken is organizing the exchange rate of banks, which helps to increase the profitability of banks and the ability to analyze the banking industry. The next one is the launch of the agreed currency, which allows exporters to sell their currency in the agreed market at an agreed rate, which has a significant effect on the issuers’ profits. Of course, as we know, the major exporters are petrochemical, steel, etc. companies, many of which are present in the capital market.

The next issue is facilitating the issuance of bonds with the instrument of Gam bonds in the capital market, which helps to accelerate and facilitate the financing of companies in the capital market. In the repo market, the central bank has also kept the interest rate in a certain channel and also prevented the violations of the banks in paying more interest than the desired amount, all of which were done in line with the support of the capital market and were effective in it.