Final Stages Reached for Iran’s Equity Shares Market Reopening, Payouts Imminent
TEHRAN – The head of Iran’s Securities and Exchange Organization (SEO), Hojatollah Seyedi, has announced that the final steps are being completed to reopen trading for the ‘Justice Shares’ scheme, a major national initiative. This move, pending final approval from the Supreme Council of the Stock Exchange, will mark a significant milestone in the long-term economic plan.
A Completed Transformation
Seyedi detailed that the process of liberalizing the Justice Shares has been fully accomplished. “Before the liberalization, all shares were held within provincial cooperative and investment companies. Now, every shareholder has precise knowledge of their direct or indirect share ownership,” he stated. This shift aims to empower citizens by granting them clear title to their assets.
The only remaining step is the official reopening of the trading symbols for these shares. Seyedi explained that this delay is due to the fact that the general assemblies of some provincial investment companies have not yet been held and their boards of directors are not fully constituted. These symbols were halted approximately three to four years ago.
Guided by Supreme Leadership Directives
The process is being carefully managed in accordance with two key principles emphasized by the Supreme Leader. Seyedi highlighted these as ensuring the “permanence of the shares in the hands of the people” and “preventing the return of its management to the government.”
The sale of Justice Shares is being planned to simultaneously provide for shareholders’ liquidity needs while preventing a sudden sell-off that could devalue the public’s investment portfolio. Furthermore, the Supreme Council of the Stock Exchange insists that the general assemblies for all provincial companies be held simultaneously to prevent price disparities between shares from different regions.
To avoid the concentration of ownership, shareholding ceilings will be defined in the companies’ statutes, preventing any single individual or entity from gaining controlling management power.
Dividend Payout Within Weeks
In a key development for millions of citizens, Seyedi confirmed that the dividend payment for the past year is expected to be completed within the next two to three weeks.
“The amounts related to the dividend from last year have largely been aggregated at the Central Securities Depository,” he said. “From there, it will be deposited directly into the account of each and every Justice Share shareholder.” He noted that only two or three companies remain to submit their dividends, which officials are actively following up on.
While an exact figure was not provided, Seyedi indicated that the payout would be slightly higher on a percentage basis than the last disbursement. The final amount depends on the liquidity situation and collections from the involved companies.
Shareholders who did not receive the first phase of dividends are urged to check and correct their bank information with the relevant authorities to ensure successful transfer in this upcoming phase.
Market Resilience and Stability
Reflecting on the broader market, Seyedi pointed to its proven resilience over the past year. He noted that in the five months of the current Iranian year (started March 2024), the market has seen positive growth on 46% of trading days.
Following recent regional events, the market has demonstrated maturity and stability. “In approximately 45 working days since the end of the 12-day war, the trading volume has doubled compared to last year,” Seyedi said, with the daily average reaching around 8 billion tomans, significantly higher than the previous average of 3.5 to 5 billion.
The development of over 533 investment funds, which collectively own 260 billion tomans in shares, was also cited as a key achievement in providing risk management tools for investors with different appetites, further strengthening the market’s infrastructure.
