The cash dividend distribution process opens up a serious challenge to the stock market / volatility range

According to the economic correspondent of Fars News Agency, Majid Eshghi stated today at the breakfast meeting of the Tehran Chamber of Commerce with representatives of private sector organizations: “Our approach in the stock exchange organization is to ensure the activities we carry out, instructions and rules and how to monitor Both in the field of publishers and in the field of financial institutions, consult with the final stakeholders, and we will always have these consultations and meetings.

The head of the stock exchange organization added: “What has happened in the capital market since the establishment of the organization in 2005 until about two or three years ago, the market stakeholders were very limited and there were about two to three million people, but in the last two years Justice and the entry of large amounts of liquidity into the market and the issuance of transaction codes It is almost said that the whole country is a beneficiary of the capital market and we have about 60 million direct equity codes in the stock market and the rest of the people are beneficiaries of the capital market through pension funds.

He said: “With the presence of this very large population, many of our infrastructures are no longer responsive to the presence, certainly the trade law and the discussion of existing processes do not meet the current needs at all.” For example, to pay dividends, a commercial law written 50 years ago states that companies have eight months to pay, but now, given the technology, this makes no sense at all.

Eshghi said: “Once we had companies that had 4,000 to 5,000 shareholders and it was not difficult to pay their cash dividends at all, but now with 60 million shareholders in the country and about 800 publishers, the cash dividend distribution process has become a serious challenge. This is a fundamental problem that did not exist four years ago. The payment of cash dividends has become a major problem, whereas three years ago there was no such problem.

He added: “The licensing process, the certification debate, has not really developed in line with the growing market, but good work has been done and the infrastructure is being reviewed.”

Eshghi said: “One of our serious discussions about project-based companies is that we have to move to project-oriented companies to raise capital. The first company to be underwrited, of course, its instructions are a bit strict, so some We amended some of its clauses so that the mining license would be calculated as the founder’s contribution to the project and the rest would be accepted by the general public.

The head of the stock exchange organization said about the people’s distrust in the stock exchange: “The arguments in this regard are correct and last year the government financed a lot of the stock exchange in various ways, including taxes, issuing bonds and selling stocks, and these put a lot of pressure on the market.” On the other hand, with the presence of a large number of people in the stock market and the influx of liquidity, it could not respond to the market and caused prices to rise, and this liquidity did not move towards the real economy.

He added: “We hope that with the follow-ups done, we will be able to compensate part of the trust this year. Now is the budget season and some items have been considered in the budget.”

Regarding pricing, Eshghi said: “There is no such discussion in the steel and petrochemical debate, although there is a long list of mandatory pricing that we must follow with help.” Of course, in addition to grammatical pricing, we also have a series of grammatical processes in various industries, such as the sale of companies that were previously state-owned and are now accepted in the capital market. But the sale process is still in the hands of the government, and a clear example is the sale of refineries, whose domestic and export sales are in the hands of the government and the Ministry of Oil.

He added: “This is while at least the export sector can be done by companies because in the discussion of bitumen, this work is being done and the private sector has been empowered in this area, which is much better than the government and at better prices than the government.” They can issue, so these cases must be followed up and resolved.

“This is a very basic discussion, the range of fluctuations has different dimensions, and the consideration about the range of fluctuations is that we are facing ambiguities in the economy, part of which is related to regulatory pricing,” he said. The point is that if we want to eliminate or increase the range of fluctuations, market fluctuations and turbulence will increase.

He added: “I agree that we should open the range of fluctuations, but it should be done gradually and on time, and it is in our plans.”

“A working group has been formed and the criteria have been approved, so if we want to modify these criteria, it will take time. Our suggestion was to start with the same criteria, but the provisions of the criteria can be modified, so” Eshghi said. These criteria will definitely be revised and amended.

“One of the problems in the capital market last year was that we split small companies and companies that do not have stable sources of revenue into 4 million shareholders, each with 5 to 6 shares, which is really a challenge for the market,” he said. Is. The small company that once had a shareholder now has 5 million shareholders, while the total staff of this company may not be more than 50 people, but they have to respond to 5 million people, and this action not only disrupted the structure of companies but also the structure of the stock market. Is messed up.

He added: “Therefore, high-risk companies should not be divided in this way, because it will become a challenge for the organization and it will be a problem for that company, and even the distribution of profits of that company will be difficult, while other such companies They can not raise capital because if it wants to send a slip to 5 million people, it will exceed the total costs of that company.

Eshghi stated about debt securities: “This year, there is a large volume of increase in the amount of debt securities in the stock exchange and the organized money market, which is traded between banks.” But these bonds do not mean the issuance of bonds.

He added: “We are very careful in government financing meetings, so that now the bonds that are issued are almost commensurate with the repayment of bonds, that is, the volume of bonds that are issued in cash in the market has not increased in recent months. Issued for previous bonds refunded.

“If the volume of bonds increases too much, it will definitely be a problem, especially since these bonds are used for the current expenses of the government, but it should be taken into account that the volume of these bonds is very low compared to the current economy,” Eshghi said. .

Referring to the published budget provisions, he said: “Our emphasis in the budget is that the government should not move the main variables of businesses in the budget every year because it destroys stability and therefore we are pursuing these numbers.” In the form of formulas that can be predicted in advance for several years.

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