The increase in the value of the first refinery after the amendment of the articles of association – Tejaratnews

According to Tejarat News, Majid Eshghi, head of the Securities and Exchange Organization, said about the Refinery 1st and Dara 1st funds: since last year, we have been following the discussion of amending the statutes of these two funds, and this amendment was made in the government committee. For several months, we were engaged in determining the market operator, the work was done, and the market operator is currently active on the first refining symbol.

He continued: Before the amendment of the articles of association, the first refinery was traded below the NAV price, but now it is traded above 90% of the NAV.

The head of the Securities and Exchange Organization explained about the reasons why the Dara 1 fund is still trading below the NAV price: This issue goes back to the nature of the two funds. The refining industry has grown well this year and its situation is more favorable. The banking industry is of a different nature. This issue has made Dara 1m unable to grow like Refinement 1m.

According to this report, it was during the peak days of the capital market in 2019 that the government promised to release three government funds in the form of ETFs, and it was decided that the first fund would be banking and insurance, the second would be the refining fund, and the third would be the automobile and metal fund. The government planned to sell its remaining shares in some banks, insurance companies, refineries, automobile and steel companies in the market and in this way give its shares to the people. These funds were handed over to people with a 20-30% discount, and any Iranian with a national code could buy them.

But these funds were also in the vortex of the stock market collapse and were traded below the NAV price for a long time. The incident that caused the head of the stock exchange organization to amend the statutes of the funds and appoint a market manager for these funds.

Amendments to the charter of Dara 1 and Refinement Investment Funds, which were approved by the Council of Ministers, are as follows:

These funds became sector investment funds. Also, fund management changed from passive to active management. On the other hand, the Bazargardan pillar was added for the aforementioned funds.

By applying the amendments to the articles of association as described above, the fund has the possibility to change its stock portfolio according to the prospectus and the relevant industry, and the market manager of the fund as a legal entity has been added to the foundations of the fund, and in line with the liquidity of the fund and reducing the distance between the NAV and the market price, it is allowed to issue and The cancellation of the investment units of investment funds is the first and the first is refining.

Source: ISNA