TEHRAN - Iran’s Capital Market Development and Stabilization Fund (CMDSF) has supplied over 90 trillion rials (about $180 million) to support the market in the first four months of the current Iranian calendar year (March 20-July 21), IRNA reported.

Based on the latest data released by the fund, CMDSF has bought market shares with a total value of $180 million in the mentioned four months to support the stock market and also the shareholders.

Back in June, a member of the National Development Fund (NDF) board of directors said that the fund was going to deposit $60 million into the stabilization fund to support the stock market.

Alireza Mirmohammad Sadeghi stated that according to the law, the equivalent of $510 million must be injected from the foreign currency resources of the National Development Fund into the Stock Market Stabilization Fund of which about $450 million has been provided and the other $60 million will also be supplied in three installments.

“Undoubtedly, the stock market is one of the best and most profitable markets for investment, and the National Development Fund, as one of the investors and influential shareholders in the capital market, tries to support this financial market with the cooperation of the Securities and Exchange Organization (SEO) by injecting resources into the market stabilization fund so that the market can Return to the profitable path,” Sadeghi said.

The allocation of financial resources from NDF to the Capital Market Stabilization and Development Fund is one of the measures that the government has been taking since the stock market started a downward trend.

Following the 13th government’s new strategies to improve the stock market, the Government Economic Coordination Headquarters convened a meeting on November 2, 2021, chaired by late President Ebrahim Raisi, during which a decision was made to inject new resources from NDF into the Capital Market Development and Stabilization Fund.

Based on the statute of the Capital Market Development and Stabilization Fund, the resources of this fund can be provided from three main sources, the first is the government investment which should be foreseen in the national budget bill, and the second is the allocation of one percent of NDF resources for this fund, and the third source would be the allocation of a part of the trades commission received by the SEO.

The Capital Market Development and Stabilization Fund’s mission is to support the Iranian stock market. The money loaned from NDF should be repaid over a specified period and the maturity can be extended. The Capital Market Stabilization Fund is responsible for paying the principal amount plus interest.

EF/MA