Iran Fara Bourse Exchange Market Company Public Joint Stock (Iran)

The main activity of the company is finance activities and the company operates in capital markets in both listed and unlisted securities.
The company was established as public shareholding company in 12 November 2008.
The company was registered under aregistration number 332483 in 12 November 2008.
The company was listed in Iran Fara Bourse in 1 June 2011.
Based on enactment of new Securities Law passed by the Islamic Parliament of Iran on November 2005, The company obtained approval of the high council of Exchange and Securities on september 3, 2007. IFB obtained license number 52946/121 from the Securities and Exchange Organization (SEO) a member of IOSCO.The Company transactions officially started on september 28, 2009.
The company operates in Capital Markets in both listed and unlisted securities. There are two main markets for listed securities and one market for Structured Financial Products such as Sukuk, CDs, Mortgage Rights, ETFs, ETCFs, VC Funds, Mortgage Backed Securities (MBS), Islamic Treasury Bills. However, in unlisted securities or OTC operations, IFB holds Auction and Negotiation based deals. Additionally IFB owns a market for Privatization of Government linked Companies (GLCs), holds Mergers and Acquisitions as well as Intellectual Property listing which make an emerging yet active and innovative exchange.
The Company has established set of prospective strategic plans in order to expand operations in new horizons. Launching Small Medium Enterprise platform is one of the IFB priorities; facilitating SME Financing is for the purpose of boosting the Economic Development of the Country. Constitution of Venture Capital Fund in Iran Capital Markets would be major contribution in building Sustainable Economic Growth. Alongside the Macroeconomic policies, development of various types of funds in Capital Markets and different indexes development would assis implementing diversification strategies of market efficiency policies. Enhancement of Islamic Finance sector such as promoting and developing Sukuk and Shariah Compliance financial products will increase the efficient and effective accomplishment of successful Fiscal Policies.
Further top priority of The Company in future would be expansion in International Collaborations, Foreign Investor Protections and provide opportunities for International Investors into Islamic Republic of Iran's Capital Markets.
MISSION
In order to have unique role in national economic development, IFB strives to securitize numerous types of asset classes and liabilities to create a platform of diversified opportunities for sustainable growth and promote allocational efficiency. Empowerment of such policies and strategic progression persuades IFB to practice and promotetransparency, reliability accompany with enhancement of liquidity.
GOALS
1. Accessibility Development and Penetration of Capital Market
2. Liquidity Enhancement
3. Transparency Improvement
4. Organizational Excellence
5. Profitability and Sustainable Growth
The Markets of the Company :
First Market Equities of public companies registered at Securities and Exchange Organization are traded. In order to recognize the stratus of interested companies for listing in this market, companies need to submit their prospectus and required documents. The listing committee at IFB will check all mentioned documents plus financial and operational status of candidate companies. Once the company could fulfill below requirements, it will be admitted for listing:
Minimum capital of IRR 10 billion
2 years active experience without any accumulated losses
Minimum of 200 shareholders
At least 10 free float shares
Shall be profitable in the fiscal year of listing
Having ratio on shareholders' equity to total assets by minimum 15
No legal claims against or in favor of the company which could have a significant effect on the financial statements
Audit report on financial statements for the last year doesn't include Adverse Opinion or Disclaimer of Opinion.
* Their last financial statements must be prepared based on accounting financial reporting standards, by laws and operating Acts notified by SEO.
* Also, their last auditing shall be performed by auditors who are validated and verified by SEO.
* Board of Directors and CEO of the company must have no record in criminal convictions or violations of laws regulations governing the capital markets.
Second Market
The Second Market like the First Market is a market for Equities of public joint stock companies registered at SEO; however, it has easier listing conditions as below:
* Minimum capital of IRR 1 billion
* 1 year active experience
* Minimum of 100 shareholders
* 5 Free Float
* Companies with bright perspective even if they have accumulated losses
* No legal claims against the company which could have a significant effect on the financial statements
* Audit report on financial statements for the last year doesn't include Adverse Opinion or Disclaimer of Opinion.
* Their last financial statements must be prepared based on accounting financial reporting standards, bylaws and operating acts notified by SEO. If auditor is not chosen among auditors validated and verified by SEO, within first General Assembly shall choose an auditor among auditors validated and verified by SEO
* Board of Directors and CEO of the company shall have no record in criminal convictions or violations of laws regulations governing the capital market.
Small Medium Market (SME Market)
This is a market for listing small and medium businesses and enterprises in order to seek financing through capital market. This market mostly is focusing on businesses which are science and technology oriented and strategies their business on knowledge and know-how.
Third Market
This market does not conduct continuous transactions and trading on stocks.
Four services are provided in this market as following:
* M A:
A private/public limited company including governmental non-governmental which is not listed in the capital market and also not registered at SEO could apply to sell a percentage of its share in this market.
* Stock Repurchase:
A company which is listed in the Capital Market may tries to buy back a specific amount of its outstanding shares. Usually companies which intend to exit the capital market or are delisted from TSE or IFB could use this option.
* Underwriting:
Underwriting of securities is performed in this market:
* Shares of under formation of public companies;
* New shares resulted from capital increase with cancellation of shareholders preemptive rights;
* preemptive right of shares of public companies
* unused preemptive right in capital increase
* Mosharaka‎, Ijara Murabaha Sukuk;
* Certificate of Deposits (CDs);
* Exchange Treaded Fund (ETF);
* Construction Fund.
- Intellectual Property:
Intellectual Property Market in IFB was launched on 1st June 2014. IP-Market in IFB is an excellent place that links industry, university science with capital. The creation of an idea and science without reflecting it on the industry is aimless. Commercialization of intellectual properties for different sections of industry such as production, services, agriculture, etc. is significant step in development and promotion of welfare in the society.
In fact, if suitable protection and investment exist in our country, new ideas can create new businesses. Management of capital and directing it into commercializing of inventions and ideas can lead to business development. Initializing a market place can prepare a common ground for owners of intellectual property and investors to find each other. In the IP-Market, owners of intellectual properties can offer their ideas and get the needed fund from investors and participants through commercializing their ideas and on the other side investors can benefit from investing in new business sectors. IP-market participants are included of institutional and individuals that act in different fields such as IT, car industry, medicine, biotechnology, nanotechnology, etc.
In the first step, IP shall be registered at Industrial Property General Office. Following with registration, they could be offered at IFB through 4 offering methods as following:
1- Offering IP-securitized base for Private Joint-Stock Company In this method, inventor establishes a Private Joint-Stock Company as Startup and continuously transfers ownership of registered IP to this company. Next, shares of this company is offered as block trades in the Third Market (the company has to have intangible property such as patent, industrial design or trade mark in its balance sheet). In this method, a part of ownership of the company is transferred to buyer as an investor. Indeed, the investor obtains license right of intellectual property.
2- Assigning IP through direct offering In this method, registered IP is permanently transferred to the buyer through offering process.
3- licensing IP for a limited time
4- licensing IP for a certain amount (Quota)
In third and forth method, IP-based securities are directly offered to buyer through a contract with certain condition and determined terms (refer to a specified period, copies, contribution to commercialization).
Base Market
Shares of public Joint-Stock companies which are registered at the Securities Exchange Organization (SEO) could be traded in Iran capital markets. In this market, companies are not listed, they are just admitted. Admitted Companies are in three categories as below:
1-Companies which are not interested in being listed but based on clause 99 of the Fifth Development Plan of Iran shall be admitted in Base Market. (According to clause 99 of the Fifth Development Plan of Iran for promotion of capital market in Iran economy, all companies which have issued securities shall register at SEO and no registration is considered as violation. Issuers registered at SEO shall disclose their financial information. Also transaction of their securities shall be performed in an Exchange or OTC. In case of any other transactions on their securities happens out of these markets, it would be considered invalid.)
2-Companies which are registered at SEO but cannot meet listing conditions.
3-Delisted companies from Tehran Stock Exchange or Iran Fara Bourse.
This market allows two types of trading mechanism:
- Ordinary (auction); based on bid/ask price with price spread
- Cross-trade (Negotiation); based on price and volume of negotiations by two parties in transaction without price spread
Advantages of trade in this market are:
* Transparency of prices,
* Using bid/ask mechanism and
* Tax incentives and discount on share transfer.
Structured Financial Products Market
All kinds of financial instruments and products approved by the Securities and Exchange High Council could be listed and traded in this market:
* Certificate of Deposit (CD)
* Sukuk (Murabaha, Ijara, Musharaka)
* Mortgage Right (HMR)
* Venture Capital Fund
* Mortgage Backed Securities (MBS)
* Islamic Treasury Bills (ITB)
* Exchange Traded Fund (ETF)
* Construction Fund; the intention of this Fund is to collect people's substantial and insubstantial savings and allocate to finance construction projects. Afterwards, distribute profits earned from selling building units among investors. Subscription of this Fund is done at Third Market. IPO of this Fund is performed at MFI. Transaction of these units is traded at MFI.