TEHRAN – Member of Iranian Parliament Economic Committee Mojtaba Tavangar has said the parliament’s new bill for amending the country’s stock exchange law is aimed at protecting the shareholder’s capital in the market.

Following the fluctuations in the stock market during the last two years which rose serious concerns among shareholders, a bill was presented in the parliament to amend the mentioned law, however, some of the articles of this bill have been widely criticized by shareholders and those active in the market, IRNA reported.

According to Tavangar, amending the stock market law was put on the agenda since last year, when the stock market started a downward trend.

One of the most important issues discussed at the Parliament Economic Committee was to study the situation of the capital market in order to take the necessary measures to change the laws related to this market to improve the trading process and to prevent such fluctuations.

This was one of the issues repeatedly emphasized by the MPs, he said.

The official noted that the amendment of the mentioned law is focused on the educational and consulting aspects to raise awareness among shareholders and to prevent any possible abuse by scammers.

As reported, changing the composition of the Supreme Council of the Stock Exchange, disclosure of financial statements of the Securities and Exchange Organization (SEO), promotion of public knowledge about the stock market, allocating a portion of SEO’s net profit to the Stock Market Development and Stabilization Fund, and changing the structure of some legal entities related to the stock market are among the amendments proposed in the new bill.

The draft of the bill for amending the stock market law, which was published by the Parliament Economic Committee a few days ago, has been facing a wide range of criticism from shareholders and market activists and this has led to different views by market experts about the need to amend this bill.

EF/MA