What are the problems with the draft capital market law?

According to Tejaratnews, yesterday, the Parliamentary Research Center published a draft amendment to the Securities Market Law, or the Capital Market, in order to obtain the opinion of experts and thinkers.

Some capital market activists have objected to the draft, saying many issues in the law have been ignored. On the other hand, some believe in its positive effects. It is also important to note that the draft amendment to the Capital Market Law does not pay much attention to the issue of education, and this is the cause of the constant losses of shareholders.

Training was ignored

Mehdi Samavati, an economist on capital market law, said: “If we compare this draft with the previous version, we will see that there are no new development plans in it.” There have been a number of improvements in the decision-making and monitoring structure, which is a good decision-making.

He stressed: Capital market education has not been taken seriously in this directive.

The economist said about the next problem of the draft capital market: “The expansion of the law for financial markets, especially the crypto market, has been ignored in this draft.” That is, the bylaw was expected to be written in such a way that it would later expand its scope.

Samavati explained: The supervisory form of this law is still punitive supervision rather than incentive. The structure of the capital market needs incentives for activists and members, and this sector may also have problems.

He continued: “The next part is related to the punishments of the judiciary and this punishment has little to do with the capital market.” Because we have the Islamic Penal Code and the capital market law should not have been written with a punitive view and such because it makes it unattractive.

The economist said that the latest issue is the obligation of stock exchange publishers to distribute profits through SJAM. On the other hand, paying interest with a maximum of three months is against the law of commerce, and we have to see how they resolve this discrepancy. Given the liquidity conditions of companies, stock market publishers may be under pressure, but for investors, buying may be an attractive option.

Samavati finally stated: The last point is related to the project fund at the national level. Given the number of semi-finished projects we have in the country, it can be attractive if this section is implemented.

The impact of capital market law on the country’s economy

Fardin Aghabzargi, a capital market expert, told Tejarat-e-News about the new capital market law: “The Brokers’ Association and the Investment Institutional Association took about five months to write proposals regarding the draft clause.”

He explained: In the first version of this draft, there are different cases. For example, we had suggestions for Article 3 of this law, but in the law of 1394, with changes, they turned a series of disciplinary bylaws and customary instructions into law, which is unfortunate.

The capital market expert continued: “Despite the development view that the country should have towards the capital market, on the contrary, the work is done with a distance from the field of expertise and there is no necessary accuracy in this regard.”

Aghabzorgi emphasized: If we want to compare the proposals presented by the Law Committee of the Association of Brokers with the draft, we see that there is a big gap.

He continued: “It seems that the demands of capital market activists will not be met at all.” The issue of amending the law may be postponed for several years. We hope that these proposed reforms, which are based on technical, legal and economic expertise, will be implemented.

Referring to the 10-day opportunity to comment, the financial market expert said: “According to the initial editions that have been proposed.” It is expected that any final corrections will be made to the original state. This is not good and the draft capital market law should be based on the expert opinion of experts, otherwise the economy and the capital market system will be hit hard.

Promote financial literacy in the capital market

Hamid Asadi, a legal expert on the capital market, said about the draft of the new stock exchange law: “The draft of the new market law should move towards the growth and promotion of financial literacy among the capital market residents and the shareholder community, which in my opinion should be strengthened.”

He continued: “The next point is the creation and development of new financial instruments that should be considered in the draft.” We need to move to new financial instruments in the capital market.

Asadi emphasizes: In the discussion of competence, there are government institutions, ministries, state-owned companies and relevant officials. That is, in the draft capital market law, we must limit the section on government intervention and government intervention in any orderly pricing in the capital market and commodities listed on the stock exchange in order to support the market.