New Transparency and Trading Directives at TSE

On 30 December 2017, new directives on information disclosure and trading procedures were
implemented at Tehran Stock Exchange, giving more supervisory roles to the trading venues in
Iran’s Capital Market.
With such regulations, the listed companies are required to prepare an interpretive
management report, as well as 3, 6, 9-month and annual statements. The Semi- and annual
statements are to be audited.
As a part of amendments, once a listed company does not observe the listing directive, or its
information is not disclosed in compliance with the regulations, or even it reports two
consecutive years’ financial statements in loss, the Exchange transfers the listed company’s
ticker into suspension process. This means, investors are required to trade such equities more
prudently. Concurrently, the issuer will be contacted to make necessary modifications to be
excluded from the process. Otherwise, the ticker will be suspended and the delisting process
will start. These measures will take investors’ more attention to TSE’s announcements, and the
related risk of non-disclosure, while the market’s liquidity will be further preserved.
An important part of the new changes relates to equity price movements. If the closing price of
a ticker fluctuates more than 20% during 5 consecutive trading days, there will be a trading halt
to ask the issuer to publish its transparency notification. Next trading day, the ticker re-opens.
Once the price movement is more than 50% during 15 consecutive trading days, the issuer will
be asked to hold a press conference while its ticker is halted. The re-opening occurs after 2
working days.
The listed companies are also no more allowed to publish their estimated earnings per share
(EPS).
Please write your enquiries to int@tse.ir for more information on the new procedures.