What is the reason for not offering cars in the commodity exchange?
According to Tejarat News, a few weeks ago, in an overnight decision, the supply of cars in the commodity exchange was canceled by the Ministry of Privacy, and now whispers of handing over this stock exchange to the Ministry of Privacy are heard.
news wrote, Javad Jahormi mentioned the issue of cars in this meeting and stated: We must announce about this issue that the Commodity Exchange fully knows the risks of trading cars in the stock market, because the society is the target of all members of the society and this issue is definitely a cost issue. And it doubles the troubles of the commodity exchange. But after many investigations, we came to the conclusion that the automobile industry has no other way to get out of the current crisis than to enter the commodity exchange.
Jahormi added: With this point of view, based on the planning that had been formed in advance, the necessary arrangements had been made with the previous deputy ministers of the Ministry of Security. It was decided to start this process with cars that are not subject to the pricing and approvals of the Competition Council, and on the other hand, the Market Regulation Headquarters does not have an approval for them. For this purpose, we first started negotiations with Iran Khodro for the supply of “Haima” and “Tara”, but the CEO of this company changed. Also, we reached an agreement with Saipa company to supply the Shaheen, and these negotiations led to the acceptance of this car in the stock market.
He continued: Bahman Group’s automotive industry was also very attractive to the audience due to the cars it offered in the market and the price difference that always existed for its products. Through the investigations, it was found that these cars were not subject to pricing and had no obstacle to be offered in the stock market. Therefore, according to the legal guidelines and regulatory processes that existed, these cars were accepted and the Kara van was sold as the first car, but from this stage onwards, events took place and different details were published about this matter, of course, the Commodity Exchange He kept silent so as not to create a challenge in the media space for the economic team of the government. But the truth is that the formed narratives were not accurate and complete.
Pressures to cancel the supply of cars in the stock market
Stating that the sale of the car was done in accordance with the rules and regulations of the capital market, Jahormi said: When it comes to the rules, one issue is Article 18 of the Financial Instruments and Institutions Law, which obliges the government to exclude the goods admitted to the stock market. export pricing and the other is paragraph C of Law 36 of Permanent Decrees, which declares that goods that are traded in commodity exchanges as organized and organized markets are accepted and traded according to the rules and regulations of those exchanges. take
He clarified: Therefore, after reviewing these rules, we talked to the suppliers for acceptance, and the cars that were to be offered were not subject to mandatory pricing. When the “Kara” car was released and traded, regardless of its impact on the car market, the next day, the Ministry of Privacy requested that the car deals be disapproved. It was explained to the Ministry of Privacy that according to the rules and regulations, it is not possible to disapprove the transactions, and the transactions were made according to the law and were approved on the same day. However, the Ministry of Security announced that the Commodity Exchange had done something against the law and this issue will be followed up.
He added: At that time, the Commodity Exchange announced to the Ministry of Silence that if there are any laws and regulations in this area, they should be announced to the Exchange so that it can be investigated, but this did not happen.
He stated: After the acceptance of Fidelity and Dignity cars, the Ministry of Privacy announced that a meeting would be held in this regard, but no matter how long the Commodity Exchange waited, a meeting was not coordinated by the Ministry of Privacy. The announcement of the release of these two cars, which was placed on the website, saw pressure from the Ministry of Security on the Ministry of Economy and on the employees of the Commodity Exchange from the security side of the Ministry of Security. Even positions were raised by the Ministry of Security that the commodity exchange was the cause of the problems in the car market. At this time, we saw that pressure was put on the board of the Commodity Exchange and the board of directors was requested to cancel the supply of cars, and in this regard, the board of directors suggested to follow the legal procedure.
The Deputy Director of Operations and Market Supervision of the Iran Commodity Exchange said: After all the official and unofficial as well as written and unwritten pressures from the Ministry of Silence, the CEO of the Iran Commodity Exchange requested in a letter to the Ministry if the legal cases regarding the non-supply of cars in There is a stock exchange to be announced. Because the previous items sent to the commodity exchange did not have a legal status and the cars that were accepted were not subject to pricing. Finally, on Tuesday, the day before the release of the car, a limited meeting was held in the office of Honorable Minister Samat, and the minister presented us with a letter that based on its provisions, the car should not be offered on the stock market. The part of this letter, which was about punishments, had not gone through the legal procedure, and in the same meeting, it was announced to the minister that this part has no legal status, but the second letter that was presented and related to the decision of the heads of the forces, should be examined legally. was placed
Several uncertainties and questions
Jahormi further added: These events created several great uncertainties, firstly, why was the resolution related to last year not communicated to any agency and the ministry remained silent, as a result of which the agencies do not know about the nature and existence of such resolutions and exactly It was mentioned the day before the car was released on the stock market. On the other hand, there were different readings about this resolution, and some experts argued that the criteria for the entry of the Ministry of Privacy in the issue of automobiles was not to enter all automobiles, but only those automobiles that have been provided to the Competition Council.
He said: The second ambiguity is that the letters previously sent by the director generals of the Ministry of Security to the Commodity Exchange had no legal basis, and on the other hand, during this period, some cases were dealt with, including the failure to form a car market regulation committee for Decide on the cars subject to the mentioned pricing. That is, since the Ministry of Security had this resolution in its possession, it could form the car market regulation committee and announce the cars subject to pricing. While according to research, the last time this committee held a meeting was in 2019, when decisions and pricing were made about high-volume cars.
He stated: Therefore, this type of behavior and attitude of the Ministry of Privacy in the field of car supply is a matter of discussion, regardless of all the criticisms that have been made to the system of the Ministry of Privacy, because the financing of car manufacturers or financial resources for current expenses with the continuation of sales in this system is controversial. .
According to Jahormi, the sale of cars in the commodity exchange could be an important experience for the ministry to have a correct view of the sale price of cars and on the other hand to observe how the market will be.
Violation in the supply of cars in the stock market
He continued: “Unfortunately, the behavior of the Ministry of Privacy after this matter is worthy of consideration.” Recently, it was announced that there was a violation and the reason for canceling the sale of the car in the stock exchange was to prevent violations, and the society expects that this violation will be clearly announced where it was.
The vice president of Commodity Exchange said: “The more important ambiguity is why the decision is made from the pockets of shareholders to sell car manufacturers that are unprofitable.” Or another ambiguity is where the law says that if the government prices a product lower than the real market price, it must pay the difference to the company in question in the same year. Now, if the shareholders want to receive the difference, how will the Ministry of Privacy react? Also, another ambiguity is that due to a system error in the car sales system, the number of cars allocated to individuals will increase overnight by the order of the Ministry of Security, but why should the cost be paid from the pocket of the shareholder or car manufacturer?
He continued: Another ambiguity is formed when the support organization reacts to this issue and declares that the lottery process is not correct, and the inspection organization also emphasizes it, but the ministry insists on doing it despite all its consequences.
He emphasizes: It is illogical to say that the sale of cars in the stock market generates rent, and it seems that the rent is a lottery in the current process. Every economic common sense confirms that the supply of cars in the commodity exchange and the real discovery of the price of this product removes the rent, but in contrast to the mandatory pricing and the continuation of the lottery, it includes the distribution of the rent.
The vice president of the Commodity Exchange also said: It should be noted that this matter was examined in the specialized commission of the Supreme Council of the Stock Exchange and the members of the commission announced their agreement to supply the cars that were intended to be made and as soon as the council meeting was held and the final decision was made. It will be announced.
Command pricing is doomed to failure
In another part of his speech, he emphasized the point that the commodity exchange was formed so that mandatory pricing is eliminated and price discovery is formed based on the supply and demand mechanism. It shows that some people still do not understand the framework of the stock market or use this framework only in places that benefit them. Past experiences have proven many times that command pricing and demand control is always a failed process.
Jahormi clarified: We emphasize that the distribution of rent, whether by demand control or mandated pricing, both have the same message, and that is that it will increase speculation and brokers in the over-the-counter market and cause losses for shareholders and operators of the same industry. will be. This issue has been tried and tested in previous governments and has had no result other than failure.
The government’s opposition to the parliament’s plan
In the final part of his speech, Jahormi pointed to the plan of the parliament and entrusting the pulse of the commodity exchange transactions to a working group and said: This plan was from a long time ago and it was also proposed and approved in the Senate, but in the new plan, clauses were added to it, and these clauses are a problem. is an instrument From a logical point of view, the Commodity Exchange is a subsidiary of the Stock Exchange Organization and above it is the Supreme Council of the Stock Exchange, so if there is a need for policy making or supervision, it can be proposed in the Council.
He announced that a law should be passed to give the authority of the goods to a working group. Experience has shown that this issue is like treating the market with taste and is nothing but ignoring the rules and regulations. The important question is whether the current mechanisms are not responsive? When the current mechanisms can be used and the monitoring processes are there, why not take advantage of it.
In the end, Jahormi said: Fortunately, when this plan was presented to the government, with the follow-up of the head of the stock exchange organization and the honorable minister of economy, the government announced its opposition in the July 5 meeting. We hope that the MPs will also investigate this issue and that this plan, which can cause serious problems for the capital market and manufacturing companies, will be amended.