What effect did the violation of Mobarakeh Steel have on the stock market?
According to Tejarat News, the Islamic Council published an investigation report on Mobarake steel on Saturday. A report that mentioned the occurrence of financial violations of about 91 thousand billion tomans of this company.
Based on this research and investigation, the losses of steel subcategories and projecting stocks were determined. For example, Toka company is one of the sub-categories of Mobarakeh Steel, a place for the personal gain of company managers and certain individuals, and the other side of this process were the shareholders who suffered due to the profit-making of stock projects, and in 2019, after the fall of the stock market index, a lot of capital The shareholders of the project companies were destroyed.
Capital market expert Fardin Aghabozurgi said: There was a lot of noise about the violation of more than 91 billion Mobarakeh steel. But the most interesting point is the difference between the profit of the fiscal year 1400 and this violation. In the fiscal year 1400, Fola made a profit of about 50 thousand billion tomans, which means that the violation of this company is twice the profit at the end of the fiscal year.
He continued: “According to the audit situation, inspection reports of violations occur, which means that the supervision circle is not very accurate.” The trust and reliance of hard shareholders decreases and major shareholders see very little loss because it is inside the company.
Reduction of trust due to steel
This capital market expert further emphasized: Most of the issues and contradictions that arise in the field of legal regulations are related to the combination of companies that are apparently private. But they are still under government supervision.
Aghabozuri explained: The next issue is non-compliance with shareholders’ rights. Big companies like Foolad only care about appearance issues. Small shareholders also cannot invest in the market through system documents.
He emphasizes: With the disclosure of such a report, the confidence of shareholders in the level of stock market and legal inspections will decrease. The appearance of these incidents causes the violation of the principles of corporate governance. In other words, the establishment of the principles of corporate governance is limited only on paper and to the extent of issues of meeting the obligations.
Regulatory bodies should be held accountable
Referring to the transparency of the capital market, Agha Bozurgi said: All issues, even the details of the explanatory reports of the capital increase, reports of the board of directors to the general assembly, financial statements and appendices, will be published after the approval of the independent auditor and the legal inspector. In another sense, the stock exchange organization is also their confirmer. It is necessary to be responsible for the type of approvals and transparency in the current situation.