The supervisory member of the Parliament in the Supreme Council of Stock Exchange and Securities said: “For the prosperity of the stock market, we need to strengthen the market stabilization fund, facilitate the process of issuing corporate financing bonds, and reduce the share of government bonds in the capital market with the aim of increasing the share of the private sector in the bond market.”
Isna: Referring to the 1403 budget bill in the stock exchange sector and paying attention to the shareholders, Mojtaba Tawanger said: the contractionary budget forecast for 1403 will have recessionary effects on the economy and as a result the capital market. Unfortunately, the share of government bonds has increased in the budget and has narrowed the scope for financing the private sector from the capital market, so from the point of view of macroeconomic variables, there is not a very favorable trend for the capital market in the coming year.
It was expected that the role of the capital market stabilization fund and its resources would be strengthened in the 1403 budget
At the same time, he said: With positive events such as the stabilization of feed rates and energy tariffs for industries, the growth has been lower than the inflation of state mining rights and property interest. It was expected that the role of the capital market stabilization fund and its resources would be strengthened in the 1403 budget, but no action has been taken in this regard.
This member of the Economic Commission of the Parliament said about the solutions for the prosperity in the capital market: for the prosperity of the stock market, strengthen the market stabilization fund, facilitate the process of issuing corporate financing bonds in the capital market, and reduce the share of government bonds in the capital market with the aim of increasing the share of the private sector in the market. We need papers.
The main condition for creating confidence among shareholders is to make the economy predictable
Regarding how to increase the trust and confidence of the shareholders, he also said: The main condition for creating trust and confidence among the shareholders of the capital market is to make the economy predictable and to have a coherent plan for development and to overcome the disagreements and economic challenges. And work including frequent changes in laws, instability in exchange rates and prices of raw materials, and discretionary decisions and mandated pricing should be resolved so that the investor can participate and invest in the market based on predictable conditions.
This supervisory member in the Supreme Council of Stock Exchange and Securities also emphasized that the process of issuing financial bonds by companies in the capital market should be facilitated, adding: Issuing all kinds of financial bonds, from partnership bonds to sukuk and Istisna, all provide suitable capacities for financing companies. But the problem is that the capacity to absorb bonds in the market is occupied by government companies and the government itself, and there is not much room left for the issuance of private sector bonds.
We do not have any special restrictions for financing companies in the capital market
He continued: In terms of laws and regulations, we do not have any special restrictions for financing companies in the capital market, but in the field of implementation, the stock exchange organization needs to be more serious in issuing corporate financing bonds.
Criticizing the fact that the provincial investment companies have not yet been handed over to the people, he said: the 2-year suspension of these companies is a blow to the people’s capital and their trust in the capital market, in a situation where the management of the investment companies has been in the hands of the government. Care should be taken so that the value of the shares of these companies does not decrease with proper marketing.
Ibn, a member of the Economic Committee of the Majlis, added: In any case, the reopening of the symbol of these investment companies should be accompanied by the reform of the management process of these companies and the presence of expert figures instead of political figures and appropriate market management of stocks in the capital market.
Industries are facing serious problems in the business environment and investment environment
He stated that the industries are facing serious problems in the business environment and investment environment, adding: According to the periodic monitoring of the Majlis Research Center and the Chamber of Commerce regarding investment security and the business environment, there are frequent changes in laws and regulations and instability in the exchange rate and the price of raw materials. It damages the companies the most. In addition to these cases, mandatory pricing has also seriously damaged various industries. More than needing serious and special support, industries need to remove barriers to production and business; Efforts should be made to make the economy predictable.
Tawanger also pointed to the issue of tax exemption for publishers for revaluations and stated: In revaluation, no type of economic process leads to the entry of cash, and the operational or financial capacity of the economic unit does not change, and only the value of the existing assets of the unit is updated. Therefore, what is added to the capital of the company under the name of revaluation is not cash income that is subject to tax.
In the end, he stressed: In any case, there should be stricter criteria for revaluation, so that a loss-making and inefficient company cannot cover up its inefficiency by simply re-evaluating thanks to inflation and the increase in the value of its assets. From this point of view, we should be careful about revaluations that are unrealistic and cover the inefficiency and losses of companies in exchange for the tax exemption of publishers’ revaluations.
