CSDI Chief Executive Officer Press Conference

Monday, 25 June 2018

In a press conference on Tuesday June 19, 2018, Chief Executive Officer of Central Securities Depository of Iran (CSDI), Hossein Fahimi, elaborated on CSDI’s current projects, vision and future plans.

Speaking to reporter, Fahimi hailed the Depository’s new client data gathering tool or “SEJAM” as the largest system of its kind that is soon to replace all initial authentication procedures already in place in Iran’s capital market.

He acknowledged that, as of late September, Dividend per Share (DPS) in respect of all securities transactions is going to be credited into an account SEJAM provides to shareholders through a centralized mechanism.

Elsewhere in his remarks, the CSDI chief said, “Based on our strategy in enhancing investors’ protection through raising the level of corporate governance, improving disclosure requirements, developing and organizing the capital market and above all in order to achieve fairness and transparency, CSDI will soon launch an Electronic General Meeting System (e-GEM) that will undoubtedly revolutionize marketing industries.” Fahimi went on to say that, “This system allows listed companies to electronically submit related documents in less than a minute and facilitates the process to virtually submit requests or comments.”

The CSDI CEO expressed hope that the domestic contractor of the system has pledged to test launch the tool in November and that it will formally take effect by March 2019.

The CEO of Central Securities Depository of Iran, then turned to revealing statistics. Fahimi said, “Some 316 thousand and 185 transaction codes –TACs – have been issued since 21 March this year, witnessing a 300 per cent increase year on year.”

The CSDI chief then reiterated that following the gradual flood of liquidity into the capital market, the financial system is moving away from a “bank-based” towards a market-based one. He announced that today, there are some 8 million and 140 thousand shareholders in the Iranian capital market, nearly 1,100 of which are foreigners. According to Fahimi, “Foreign shareholders at Iran’s capital market come from 43 countries and Europeans share is the major part of it.”

On the international front, the Chief Executive Officer of Central Securities Depository of Iran highlighted constructive collaboration between CSDI and foreign institutions in the framework of 14 Memoranda of Understanding, saying, “CSDI is resolved to continue and even further improve its interaction with international institutions.” He said providing shareholders with best services in compliance with all international standards is CSDI’s number one priority.”

Asked about the U.S. unilateral economic sanctions against the country, Fahimi responded that “despite their significant limitations and adverse externalities, sanctions have failed to halt international activities of Central Securities Depository of Iran because regardless of international risks, there are still countries that enthusiastically consider entering the Iranian capital market.

Asked about the latest trend in regards with the plans to list crude oil on the stock market, Fahimi said the decision is yet to be approved at the Court of Auditors.

Central Securities Depository of Iran (CSDI) is the sole registrar, central custodian and clearing house for the Iranian capital market.