Title: “Justice Shares Update: Key Developments in Iran’s Stock Market and Future Payout Plans”
Background of the Justice Shares Program
Mehdi Hajivand, Assistant to the Head of Iran’s Securities and Exchange Organization for Justice Shares affairs, provided an update on the long-running Justice Shares program, which has been in effect since 2006. The initiative covers 50 million citizens, with dividends originally intended to be paid to the government over a 10-year period instead of annual shareholder payouts.
Post-10-Year Plan: Unlocking Shares and Dividend Payments
Hajivand explained that after the initial decade, two key steps were planned:
- Share Liberation: Allowing citizens to sell or manage their shares.
- Annual Dividend Payments: Direct deposits into shareholders’ bank accounts via the Sajam system, a process still ongoing since 2016.
A brief trading window for Justice Shares opened in 2020 but was suspended by the High Council of the Stock Market to protect shareholders amid unfavorable market conditions.
Current Status: Prerequisites for Resuming Trade
Hajivand emphasized that reopening Justice Shares trading depends on two factors:
- Provincial Investment Company Assemblies: Nearly half have already convened, per a November 2023 High Council resolution.
- Favorable Market Conditions: The Securities and Exchange Organization has no immediate plans to resume trading until assemblies conclude and market stability is ensured.
Expert committees are evaluating trade models to balance shareholder rights and market health, with proposals to be submitted to the High Council for approval.
Dividend Payouts: Changes and Timelines
This year’s second installment of Justice Shares dividends—unusually scheduled for summer instead of autumn—will be deposited by late September. The first tranche, paid in March 2024, ranged from 744,000 tomans (for 492,000-toman shares) to over 1.5 million tomans (for 1-million-toman shares), with similar amounts expected for the second phase.
Delays stemmed from unresolved payouts by major companies like Persian Gulf Holding, Mobarakeh Steel, and Iran Telecommunications, now finalizing settlements.
Future Reforms: Streamlined Dividend Distribution
Starting in 2025, dividends will be paid in multiple scheduled installments to avoid delays, ensuring shareholders receive payouts more predictably.
Hajivand reiterated that while share liberation occurred once in 2020, resuming trades hinges on market readiness. For now, the focus remains on structured dividends and safeguarding shareholder interests.
Note: All updates align with Iran’s regulatory frameworks and aim to enhance transparency for Justice Shares stakeholders.
