A Conference on financing opportunities for companies listed at Tehran Stock Exchange (TSE) was held on April 25th 2011, attended by Iran's Minister of Finance and Economic Affairs, Head of Securities and Exchange Organization and CEO of TSE.
The purpose of the event, which was held in IRIB's center for international conferences, was providing awareness about the new policies of strengthening the role of capital market in financing economic activities and introducing new capacities in Tehran Stock Exchange after the recent market growth, in order to issue bonds, Sukuk, as well as raising listed companies' capital.
Dr. Hassan Ghalibaf Asl, CEO of Tehran Stock Exchange made an opening speech in the event.
"The main purpose of this conference is sharing experiences and ideas for applying the existing financing opportunities. Directors should be cautious about increasing added value as much as possible and developing dividend payment policy. This will encourage shareholders to be concerned about retained earnings of the companies.
"TSE's CEO informed attendants about launching of new instruments and entities in the capital market during this year.
He emphasized the role of capital market in financing and noted: "financing status through Tehran Stock Exchange has been improved in a way that it has been increased to about USD 4 billion last year, comparing to its previous year amount of only USD 1 billion. However, despite this progress, still there is a huge gap in the share of Stock Exchange financing in Iran (% 5), in comparison with the global average (%15-20)."
He finally noted on reducing the cost of financing as advantage for TSE and concluded: "companies interested in development, should pay more attention to financing methods, and retained earnings is a very important source here. Although local enterprises use little amount of domestic resources, the majorpart of financing in the world is done through retained earnings."