TEHRAN – The head of Iran’s Capital Market Stabilization and Development Fund, Amir-Mahdi Sabaei, said on Friday that part of the allocations from the National Development Fund (NDF) had been deposited in the stabilization fund to support the stock market.
Sabaei earlier announced the allocation of 120 trillion rials (about $430 million) of NDF resources for the Capital Markets Development and Stabilization Fund, IRNA reported.
The official said that the rest of the funding will also be disbursed based on a mutually agreed schedule, adding, “We hope that the rest of the deposits, like the deposits made yesterday, will be made regularly according to the agreed schedule. “.
Sabaei noted that in addition to resources received from the NDF, the fund can also be financed through money and capital markets.
The allocation of financial resources from the NDF to the Capital Market Stabilization Fund is one of the measures that the government has taken since the stock market started a downward trend.
Following the new strategies of the 13th government to improve the stock market, the government’s economic coordination headquarters convened a meeting on November 2, 2021, chaired by President Ebrahim Raisi, during which it was decided to inject new NDF resources in Capital Market Development and Stabilization Fund.
Based on the statute of the Capital Market Development and Stabilization Fund, the resources of this fund can come from three main sources, the first is public investment which should be provided for in the national finance bill, the second is the allocation of one percent of the NDF’s resources for this fund, and the third source would be the allocation of a portion of the transaction commission received by the Securities and Exchange Organization (SEO).
According to Sabaei, currently 30% of referral fees are deposited directly into the account of this fund daily.
The Capital Market Stabilization and Development Fund aims to support the Iranian stock market. The money lent by the NDF must be repaid over a fixed period and the maturity can be extended. The Capital Market Stabilization Fund is responsible for paying the principal amount plus interest.