Where did the reform of the securities law go? Parliament’s lack of attention to asking market activists

According to Tejarat News, the draft capital market law was published by the parliament not long ago. Of course, the previous draft had many problems and experts may object to this draft.

The previous publication raised many objections by capital market activists, and policy makers promised to implement reforms according to the opinion of stock market experts. And this draft went to the parliament without considering the opinions of the market activists

Ehsan Haji Ali Akbar, a capital market expert, said in a conversation with Tejarat News: The draft securities law was published by the parliament for the umpteenth time. Also, since the previous release, many protests have been raised by capital market activists, and policymakers have promised to implement reforms according to the opinion of stock market experts. But this draft went to the parliament without considering the opinions of market activists, which can be problematic.

He further added: Considering the oldness of the current version of the Securities Market Law, which dates back to 1984, i.e. 17 years ago. The amendment of the law is not a secret to anyone, and many individuals and companies are currently involved in the capital market; Also, the stock market plays a bigger role in financing the economy.

Lack of attention towards the people of the capital market

Haji Ali Akbar stated: This is the second draft that the parliament has published and the opinions of the people of the capital market have been included in it. This is in the context that the previous draft published by the Majlis Research Center was approved by market activists, veterans, experts and expert lawyers. This was the first time that this number of experts worked in the capital market to correct a text.

The CEO of Hafez Investment Consultant said: The Economic Commission of the Parliament ignored this report and published a new draft that did not contain the previous amendments. Of course, the new draft can be amended, but each time the parliament takes a little time to amend and receive comments. After collecting the opinions of different market people for a long time. publishes another draft again and has not paid much attention to the opinions received; It is as if the draft was rewritten by the parliament.

Bazarsarmayeh activist said: These conditions make it difficult for market activists to give new opinions. It feels as if the opinions of the market participants are not important and this process is only going through so that the petition is not empty.

He added: The growth of the capital market and the increase in the number of its financial institutions definitely needs laws that can strengthen its position in the country’s economy, and it would be better if the opinions of the people of the market were taken before the law was written, not after it was written.

This capital market expert stated: After the law is passed, the people of the market should work with the new law. Therefore, market participants are very sensitive in this field. Because changing laws and regulations in Iran’s economy is very complicated and does not necessarily happen in the most optimal way. Therefore, if each person is supposed to write the law from his own point of view, it is natural that the tendency of the law will be towards their own interests or values.

Economic growth of the country

Haji Ali Akbar stated: It is natural that the consensus of all opinions cannot be taken into account. But when 50% of the activists and stakeholders agree on the closure, it can be turned into a law. Also, the officials of the stock exchange organization have a view of avoiding violations and supervision. The view of market activists and managers of financial institutions is the growth of the company, the market and investment, and the country’s economic managers look at the market from the perspective of economic growth and economic development and financing. As a result, these several groups should be able to agree on the default text, but in the current situation, every person who has access to the parliament publishes his text and will probably approve it, which is not favorable to everyone’s opinion.

Hafez, the CEO of Moqal Investment Consultant, said: Certain people in a room cannot make decisions for others, and there is a deep weakness in comparative studies. For example, after the 2008 financial crisis, a large number of laws have been revised in the United States and the European Union. A law that does not have comparative studies of superior and equal countries will not go anywhere. As a result, we have to look at the laws and developments of the world in this field, and the development of the market is also related to the policy maker’s view. Even if the best laws are written and the policymaker wants to prevent its development with overnight approvals or mandatory pricing, these laws will not help.