Where is the government’s generosity from Bait Al-Malal/ the source of stock supply for babies? – Tejarat News

According to Tejarat News, according to the announcement of the Minister of Economy, government shares will be given to babies born since 1401. According to the Minister of Economy, Ehsan Khandozi, Article 11 of the Population Youth Law obliges the ministry to allocate shares for newborns, which is one and a half million tomans per person for those born in 1401.

Critics had previously warned against actions such as allocating shares from the financial source of the budget or shares of funds and warned of repeating the bitter experiences of the stock market. The twelfth government handed over Dara and Palash 1 in the green days of Bazar, but this handover was unsuccessful; Despite the difference in the method and comprehensive goal of handing over shares of the funds, both of these measures have one point in common, and that is the show maneuvers of the governments from the stock market’s pockets. Now it seems that the 13th government is repeating the failed experience of the 12th government and creating a new dissatisfaction in the stock market.

But in the meantime, the supply source of these stocks is also very controversial; According to article 11 of the protection of the family and the youth of the population, the parliament is obliged to allocate 10 million Rials for each child from the beginning of 1400 up to an annual limit of 10 thousand billion Rials only for the purchase of units of investment funds that can be traded on the stock exchange in the name of the child. assign

Of course, this figure is 15 million Rials for those born in 1401 and it is supposed to be determined and provided for in the budget law for seven years. In this way, the government has been obliged to allocate a significant amount to the stock of babies every year; This is despite the fact that the figure of the government’s budget deficit is increasing every year, and for this year, according to the report of the Majlis Research Center, it is estimated between 300 and 600 thousand billion tomans!

In this way, whether the government wants to provide these shares from the budget or allocate them from the state shares, it has put money in its pocket.

Does the stock market become a government tool?

But another challenge in this regard is the stock market, which is always under the influence of the policies imposed by the government, and experiences bitter experiences. It was a few weeks ago that the total stock market index was able to break the ceiling of 1999 and enter a new range. According to the experts, the growth of the capital market will continue and this year’s glass hall will get the highest return compared to the parallel markets and inflation.

The total stock market index experienced very good growth this year and was able to record 18.6% return in just 17 working days. Recording these growths has made the government think about using the stock market again.

If we look at the past experiences, we will realize that when the government thought of supporting the stock market or supporting the people through the stock market, the market started to decline or fall.

It was last week that the head of the 13th government ordered to monitor the capital market, and now, with the market becoming more positive, he is looking to hand over government shares to those born in 1401. This issue has not been able to take a positive step for the market since the beginning of the 13th government until now, but now that the stock market has fallen on the path of productivity due to the natural factors of the market and the economy, the government has opened its feet to the stock market again.

Previously, various support packages or asset sales and refining were presented by the (twelfth) government, none of which came to fruition on time and left only losses and dissatisfaction for the shareholders.

With this experience and the budget deficit that the country is involved in every year, the authorities have now decided to hand over shares to Nazdan for seven years, which will probably result in a very large and heavy dimension.

This transfer of shares harms the nature of the capital market and the economy of the country and has no result except losses for the shareholders of the capital market and an increase in the budget deficit.

Supplying resources from government stocks

Capital market expert Fardin Aghabozurgi told Tejarat News: “Based on the past experiences of the capital market, we can say that whenever the stock market experiences vitality and freshness, the officials put their foot down and say that the stock market has become positive because of our activities.” On the other hand, when the stock market goes down, they say that the market situation is not in our hands and that international, fundamental and global economic issues have caused a change in direction.”

Referring to the transfer of government funds to infants, he stated: “The transfer of units of such funds is mainly not from the property of third parties, but from the share of the government in these funds.”

This financial market expert continued: “The government reduces its ownership due to its share in these funds through the general principles of Article 44 and transfers it to people like a one-day-old baby.”

Referring to the process of these handovers, Aghabouzuri explained: “Any code can buy from the unit of these funds; But the important thing is that up to a certain age (24 years), the authority and management of the fund for these babies belongs to the guardian (father, mother and children).

He stated: “In the meantime, the important point in handing over is that the ownership and management of the asset should be removed from the government and its management should not be in the hands of the government like Dara and Refinement 1, and it should not be solely for the implementation of government goals.”

Will the government interfere more?

Aghabozuri continued: “Any interference in the natural mechanism of the markets will harm the economy. In a way, a prescriptive view in the field of economics in the capital market is a negative thing, and past records also show that it was not a successful experience.

This capital market expert explained: “Any intervention in the capital market with the intention of controlling it will work in the short term; But interference and manipulation in the long term will make the market unstable and face an increase in thirst.”

Repeating the bitter experience

This capital market expert said about the baby fund: “The fund that the government is promoting for babies now will only result in losses. The government has the most expertise in the country’s economic space and capital market, and because of this, it has come to the funds during the growth of the market.”

At the end, Aghabozuri said: “According to the government’s approach and method, it seems that this plan is not successful. “Because they have not determined the size and structure of these funds, and like equity shares in 1999, this plan will fail.”

According to the circumstances, it seems that these funds are not a successful experience in the stock market; Because people will come to the conclusion that the government has not stopped interfering in the stock market and considers the stock market a reliable source to compensate for its budget deficit and advertising policies. With these interpretations, people prefer to withdraw their capital and liquidity from the stock market, which will result in the fall of the index again and the fall of the capital market.