Tehran Stock Exchange ( TSE)

The idea of having a well-organized stock market and to speed up the process of industrialization of the country dates back to 1930's when Bank Melli Iran started a study about the subject. A report completed in 1936 worked out the details for the formation of a stock market and laid down the preliminary foundation to proceed with the plan.
The outbreak of the World War II and subsequent economic and political events delayed the establishment of the stock exchange upto the year 1967 when the Stock Exchange Act was ratified.

The Tehran Stock Exchange opened in April 1968. Initially only Government bonds and certain State-backed certificates were traded in the market. During 1970's the demand for capital boosted the demand for stocks. At the same time institutional changes like the transfer of shares of public companies and large private firms owned by families, to the employees and the private sector led to the expansion of the stock market activity. The restructuring of the economy following the Islamic Revolution expanded public sector control over the economy and reduced the need for private capital. At the same time the abolishment of interest-bearing bonds terminated their presence in the stock market. As a result of these events, Tehran Stock Exchange started a period of standstill.

This stop came to an end in 1989 with the revitalization of the private sector through privatization of state-owned enterprises and promotion of private sector economic activity based on the First Five-year Development Plan of the country. Since then the Stock Exchange has expanded continuously.
The TSE Council is the highest authority in the stock exchange. State officials as well as the private sector representatives and specialists are members of the Council. The Governor of the Central Bank presides over the Council. Other constituent organs of TSE are Acceptance Committee, Arbitration Board and Brokers Organization. The Board of Directors of the latter is the highest policy-making authority in TSE and appoints the secretary general as the chief executive officer, CEO, for a period of two years. Re-appointment is permitted without any restriction. There are two Senior Deputies acting under the Secretary General who are responsible for economic and technical affairs and administration and finance respectively.

Trading in TSE is based on orders sent by the brokers.
Trading hours are 09:00-12:30 Saturday to Wednesday, with the exception of public holidays. A CDS is operating in TSE and clearing process is automated.
TSE Services Company, TSESC, who is in charge of computerized site, supplies computer Services. Presently,TSE trades mainly in securities offered by listed companies. The introduction of project-based participation certificates that bear a fixed annual return during the period of the project and promise the final settlement of the profit at the date of its completion, has diversified the market.
TSE is a full member of FIBV, a founding member of Federation of Euro-Asian Stock Exchanges (FEAS). TSESC is a member of ANNA