Opening a trading account

 

To open a trading account to invest in Iran capital market, you need to pass these three simple steps:

  • For individual investors:
    1. Opening an Iranian Rial Bank Account
    2. You are required to provide us with your original passport or send us a photocopy of your passport certified by an Iranian Embassy located in your residing country
    3. Complete Trading License Application Forms. You can download the forms here
  • For institutional investors:
    1. Opening an Iranian Rial Bank Account
    2. The originals and copies of the constitution/articles of association or documents of similar nature and documents proving the foundation of company and the scope of powers of the duly authorized signatories.
    3. Note -The documents stated in this article shall be produced either in English or in Persian (Farsi). If the originals of the documents are in another languages, the production of its translation in English or in Persian shall be sufficient providing that the translation of the given language has been certified by the authorities in charge of the official translation in Iran, or by the country in which the applicant resides or by the country which has issued such documents.

    4. complete Trading License Application Forms. You can download the forms here

Some of the most important FOREIGN INVESTING REGULATIONS

FOREIGN INVESTING REGULATIONS

  • Foreign investor:
  • A foreigner who is granted an SEO transaction license.

  • Strategic foreign investor
  • A strategic foreign investor is a foreigner who intends to possess more than 10 percent of shares in a company listed in either stock exchange or other bourses. A strategic foreign investor may be also a foreign investor who holds a seat in the board of directors of a listed company.

    A strategic foreign investor is not allowed to sell acquired shares designated as ‘strategic’ within two years of purchase without SEO approval.

    Selling strategic shares is also subject to the rules and regulations governing block trades

  • Non-strategic foreign investment
  • Share possession boundary:

    Share possession boundaries by non-strategic foreign investors investing in listed companies are defined as

    1. Collective investments by foreign investors shall not exceed 20 percent of total issued shares of any listed company; and foreign investors shall not, collectively, hold more than 20 percent of total shares of the aggregate total issued share capital of any bourse or exchange.
    2. Shares held by a single foreign investor shall not exceed 10 percent of total issued shares of any listed company.

Commission Fees

 

As of July 2010, TSE trading fees include:

Fees (%of trade value) Buy Sell Max (Buy) Max (Sell)
Broker 0.4 0.4 200 IRR mn 200 IRR mn
TSE 0.032 0.048 160 IRR mn 240 IRR mn
SEO 0.032 0.048 80 IRR mn 120 IRR mn
Clearance 0.012 0.018 160 IRR mn 240 IRR mn
TSETMC 0.01 0.015 80 IRR mn 120 IRR mn
Tax - 0.5 - -
Total 0.486 1.029 - -

TSE’s trading fee

Source: www.seo.ir


All trading fees on IFB markets namely; primary, secondary and third markets, including Base Market are as follows:

Fees (%of trade value) Buy Sell Max (Buy) Max (Sell)
Broker 0.4 0.4 200 IRR mn 200 IRR mn
IFB 0.032 0.048 160 IRR mn 240 IRR mn
SEO 0.02 0.03 80 IRR mn 120 IRR mn
Clearance 0.012 0.018 160 IRR mn 240 IRR mn
TSETMC 0.01 0.015 120 IRR mn 180 IRR mn
Tax - 0.5 - -
Total 0.474 1.011 - -

IFB's trading fee

Source: www.seo.ir


Commission fees for various types of mutual funds and also ETFs are as follows:

Fees (%of trade value) Buy Sell Max (Buy) Max (Sell)
Broker 0.4 0.4 200 IRR mn 200 IRR mn
IFB 0.032 0.048 160 IRR mn 240 IRR mn
Clearance (CSDI) 0.012 0.018 160 IRR mn 240 IRR mn
TSETMC 0.01 0.015 80 IRR mn 120 IRR mn
Total 0.4540 0.4810 600 IRR mn 800IRR mn

Transaction Commission for Stock Funds

Source: www.seo.ir


Commission fees for various types of mutual funds and also ETFs are as follows:

Fees (%of trade value) Buy Sell Max (Buy) Max (Sell)
Broker 0.2 0.2 200 IRR mn 200 IRR mn
IFB 0.016 0.024 160 IRR mn 240 IRR mn
Clearance (CSDI) 0.006 0.009 160 IRR mn 240 IRR mn
TSETMC 0.005 0.0075 80 IRR mn 120 IRR mn
Total 0.2270 0.2405 600 IRR mn 800IRR mn

Transaction commission for blended Funds

Source: www.seo.ir


Fees (%of trade value) Buy Sell Max (Buy) Max (Sell)
Broker 0.08 0.08 200 IRR mn 200 IRR mn
IFB 0.0064 0.0096 160 IRR mn 240 IRR mn
Clearance (CSDI) 0.0024 0.0036 160 IRR mn 240 IRR mn
TSETMC 0.002 0.003 80 IRR mn 120 IRR mn
Total 0.0910 0.0800 600 IRR mn 800IRR mn

Transaction commission for Fixed Income Funds

Source: www.seo.ir


Fees (%of trade value) Buy Sell Max (Buy) Max (Sell)
Broker 0.001 --- IRR 180 M ---
TSE 0.0007 --- IRR 360 M ---
Clearance (CSDI) 0.0001 --- IRR 200 M ---

Transaction commission for ETFs

Source: www.seo.ir


Taxation

 

Taxes on both TSE and OTC transactions are as follows:

Cash dividend: no tax (22.5% at source from Company).

Share transfers: The Tax Amendment has changed the regulations regarding the calculation of tax on the transfer of shares and their rights in Iranian corporate entities. In the case of shares listed on the TSE the tax on transfer of such shares and other rights is 0.5% of the sales price. In the case of the transfer of the shares and their rights to other corporate entities (i.e. those not listed on the TSE) a flat rate of four per cent of value of the shares and rights transferred applies. No other taxes will be charged. The Amendment has removed the requirement to value the shares in this category.