How to invest in iran stock exchange

How to invest in iran stock exchange

Author: Glac Date: 16.06.2017

Of course you need more specific information to actually start investing specially as a foreign investor.

That is why we have tried to cover the steps you need to take. We at Agah Group get so many questions all the time sent to our mail box. Although you can always feel free to ask us for more information , we have tried to answer many of the questions on how you can invest in this post.

Please ask us for more by dropping us an email. Since , the Tehran Stock Exchange index has risen from just below 9, up to more than 54,, an astonishing rise of over percent. The World Federation of Exchanges ranked the Tehran Stock Exchange or TSE as the second best performing in After the recent presidential election in Iran, the TSE broke its all-time highs daily.

As with several emerging stock markets, the TSE historically set a number of limitations on foreign investment. This simplified the application procedures for foreign investment on the TSE. There are a couple of options each with their own pros and cons which will be covered in more detail below:.

In order to invest directly on TSE, investors, individuals and entities, must have a valid investment license and also a trading code through a brokerage firm. Therefore choosing a stock broker is the first step of the procedure. You will find all the information you need regarding the issuance of a trading license in Fig 1. We have been informed recently that the Securities and Exchange Organization of Iran is working to remove the requirement for an investment license for foreign investors.

But currently it is required. Once the license is issued and you obtain a trading code, orders can be placed through one of the following methods: A online trading, is where individual investors and traders buy and sell securities over an electronic network trading platform , through a brokerage firm e.

However, you should know that as the infrastructure required to provide comprehensive data and customer support in English is still in its early days, we do not recommended you to start with an online trading account. As tempting as direct investment may sound, there are difficulties associated with the method and we do not to recommend it to foreign investors. Nominee accounts, as we call them, allow investors to own shares and securities without becoming involved in any of the associated administration or paperwork that is indispensable when transacting in the market.

An investment license is still required from the SEO.

how to invest in iran stock exchange

The investor is supposed to place the order himself through one of the approved channels that are provided by and available through the broker. The investor can also expect in-depth company specific reports in English to support his investment strategies. Using nominee accounts, you are not required to sign each order sheet before execution nor you are required to be present in Iran to execute the paperwork after it is prepared.

Managed Account, as it is clear from the name, refers to investment accounts that are owned by an individual investor and looked after by a retained professional money manager. This is the most advanced account a broker can provide for its high net worth clients. In contrast to mutual funds which are professionally managed on behalf of many mutual-fund holders , managed accounts are personalized investment portfolios tailored to the specific needs of the account holder.

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Investors must have an official investment license in order to own a portfolio account as explained above. Company specific reports in English along with routine performance reports are also provided with each managed account.

A mutual funds is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds have advantages over investing directly in individual securities. For two consecutive years, , our funds management team won prime portfolio manager awards for their accomplishments in Agah and Aghigh mutual funds respectively.

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Currently the first step is to get a trading license. All applicants must complete Form 1, then individuals complete Form 2 and legal entities complete Form 3.

how to invest in iran stock exchange

The process is summarized in figure 1. It also covers getting a trading code which is required if you are not interested in mutual funds.

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If you are a fan of mutual funds, which is the best first step we believe, you can find the procedure in figure 2. Identifying and making use of a favorable and profitable investment opportunity requires a comprehensive understanding of the local capital markets.

That is why we always suggest starting by investing in mutual funds. Should you want to be more actively involved , here at Agah Group, we are well positioned to deliver customized strategies and professional investment consulting services to meet the needs of foreign investors.

For more information please contact us via email at info agahbroker. You must be logged in to post a comment. Please ask us for more by dropping us an email Since , the Tehran Stock Exchange index has risen from just below 9, up to more than 54,, an astonishing rise of over percent. Investment Options There are a couple of options each with their own pros and cons which will be covered in more detail below: Investment with direct involvement Nominee Accounts Managed Accounts Mutual Funds Investment with direct involvement In order to invest directly on TSE, investors, individuals and entities, must have a valid investment license and also a trading code through a brokerage firm.

Nominee Accounts Nominee accounts, as we call them, allow investors to own shares and securities without becoming involved in any of the associated administration or paperwork that is indispensable when transacting in the market. Managed Accounts Managed Account, as it is clear from the name, refers to investment accounts that are owned by an individual investor and looked after by a retained professional money manager.

Mutual Funds A mutual funds is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

Ability to participate in investments that may be available only to larger investors. Mutual funds are regulated by the SEO Ease of comparison: All mutual funds are required to report the same information to investors, which makes them easy to compare.

Funds under management of Agah Group. Share this article 0. News next year nuclear deal Nuclear Framework Agreement Petrochemical price to earning ratio Saderat Bank SEO Sina Chemical Industries Company Tehran Stock Exchange Trading Halts Trading reopening Trading Reopenings TSE TSE index value of trades volume of trades.

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