Tehran SE Future Outlook 2007

Regulations on Foreign Portfolio Investment have been ratified by Cabinet in June 2005.   Initially, there will be a 10 percent limits on the percentage of ownership in each corporation by foreign investors.  The door of the Iranian Capital Market is now open to foreigners.

There have been numerous efforts for the geographical expansion of the exchange.  There are now regional trading floors in more than 20 provinces that are fully operational.

The TSE intends to play more active role among FEAS member countries, actively participate in the Working Committee and Task Forces.

There is also a plan for cross-listing of the TSE s listed companies at the other Exchanges.

It is expected that the user acceptance testing of the new trading engine which has bought from Atos Euronext Market Solutions (AEMS) to be started in the 1^st quarter of 2007, and the new system will go live during 2^nd quarter of 2007.

Finally, based on the new Iranian Capital Market Law which has been passed by the lawmakers and now become operational, changing in the Iranian Capital Market in general and the TSE structure in particular has been taken place; the Tehran stock Exchange has been demutualized now. Based on the new Law, following activities have been forecasted:

Editing supervisory rules and regulations

Establishing new financial institutions, such as: Rating agencies, Mutual Funds, Investment Banks, etc.

Introducing new financial instruments, such as: Different kinds of bonds, Derivatives, etc

Establishing new financial markets, such as: OTC and Primary Market