Instructions on the membership in Iran stock market brokers institute

Posted on Posted in Business Guidelines

In implementation of Article 33 of the stock Market Law of Islamic Republic of Iran ratified in November 1384 and paragraph 4 of article 7 and articles 77 and 73, The constitution of the stock market and Exchange brokers, the instructions are suggested by stock market brokers institute and approved by stock market Board of Directors after making some amendments.
Article 1. all words and expressions defined in article 1 of the law on stock market ratified in 1384 by Iran`s parliament have the same definitions in this instruction. Other words have the following meanings:
1. institute: stock brokers institute that is comprised by the organization`s license and the examples of institute are defined in paragraph 5 of Article 1 of the stock Market Act.
2. Member: legal entity that is licensed by the organization as brokers / traders or portfolio and has been accepted as a member in the institute.
3. member affiliates: includes the following:
the actual members of the Board of Directors, representatives of Legal Members of the Board, Director, managers, traders, officials accepting the orders. Customers, representatives of portfolio management, portfolio management and analyst, branches authorities and the financial Members authorities and other individuals associated with members of the institute as the case may be, are known as member affiliates.
Article 2. The institute categorizes members, depending on the license received from the organization, into four groups. A member can be classified in more than one category:
1. Active members with the exception of derivatives trading in stock market;
2. The members active in derivative transactions;
3. The members active in trading metal or petrochemicals and petroleum products accepted in goods Stock
4. members active in the trading of agricultural commodities
Article 3. applicants for membership in the institute shall have the following documents and information in the forms approved by the institute and Submit them to the institute:
1. Establishment and operation license from the stock market
2. completed form to request membership in the institute;
3. The names and details of shareholders, the number and percentage of shares of each;
4. The amount of registered capital and paid-up member;
5. The names of the members of the Board and CEO approved by that organization
6. Organizational charts;
7. offices and branches address ;
8. Names of personnel and other member affiliates and their positions;
9. the next two years plan;
10. specifications of software and main tools
11. documents certifying the payment of entrance fee
Note: the member shall inform every kind of change in presented information to the institute within 7 business days after the change has been made.
Article 4. after presenting the information and documents brought in article 3 and the verification of their completeness by the institute, the member will be accepted as the institute member and he will be notified by the institute.
Article 5. if the member makes any communication with new member affiliates or stops communicating with any member affiliates or any change in his relation with member affiliates, he shall inform the institute within 7 business days. If member affiliates make mentioned relations in paragraph 3 of article 1 or if any member is considered as a member affiliate and subject to article 8, he shall follow the rules brought in article 10 of this instruction even if he is not introduced as a member affiliate to the institute.
Article 6. When a member asks for membership, he should pay entrance fee to the institute to be accepted as a member. Also a member of the institute shall pay membership fee , determine by the institute in the annual deadlines for his own membership and member affiliates of the institute. Paid fee is not refundable.
Note 1. The maximum entrance fee and annual dues of members and member affiliates is approved by the organization, suggested by the institute. Institute shall announce the annual membership fee to the members after it is approved.
Note 2. Non-payment of annual membership fees in due course is considered as violation. The institute can ask and receive its demands from stock market central depository company and the settlement of annual unpaid fees from the deposits of members in the company.
Article 7. Members of the institute shall avail the information and documents, requested by the institute, in order to perform their duties after the request is approved.
Note. Information and documentations of the members shall be considered confidential and the institute cannot provide other people with them except in cases stipulated in law and regulations and to the organizations or authorities that the organization determines .
Article 8. member affiliates are required to participate in courses that the institute hold to improve practical and theoretical capabilities of them.
Article 9. When a member applies for temporary or permanent withdrawal from his activities, he shall announce it to the organization, institute and the relevant stock exchange and his license shall be submitted to the institute.
Note 1. Accepting withdrawal by the institute will be done after its approval according to the terms of the organization.
Note 2. members are obliged to pay an annual membership fee in temporary withdrawal period.
Article 10. institute regulations are binding for all members and member affiliates. In case of controversies between the decisions of the institute with the laws, statutes and other regulations, each member of the institute can submit his complaint to the organization. After the hearings, the decisions inconsistent with laws, regulations and the Articles of Association of the institute will be abolished.
Article 11. In case of violation of the provisions of the instruction or other related laws and regulations by any of the members, the institute refers it to the center of investigation of violations, subject of article 35 of stock market Act. In case it confirmed the violations, the investigating authority may expose the defaulting member to one of the following sentences:
1. written notice without inserting in the member`s file
2. written warning and inserting in the member`s file
3. Prohibition of trade in all or some of the stock exchanges, commodity exchanges or OTC markets for certain periods
4. The suspension of membership in the institute;
5. Cancellation of membership in the institute.
Note. In case of suspension or cancellation of membership in the institute, the activity of the member in stocks market will be Suspended or canceled.
Article 12. In case of violation of the provisions of the instruction or other related laws and regulations by any of member affiliates, the institute refers it to the center of investigation of violations, subject of article 35 of stock market Act. In case it confirmed the violations, the investigating authority may expose the defaulting member to one of the following sentences:
1. written notice without inserting in the member affiliate`s file
2. written warning and inserting in the member affiliate`s file
3. Prohibition of the use of all or some of the benefits of professional qualifications or certificates for at most two years
4. Releasing member affiliate`s name and the type of offense for general information in newspaper especially after the finality of judgment;
Article 13. the investigating authority must intensify sanctions if one of the offenses is repeated during less than a year by members or member affiliate.
Article 14. the instruction is approved by the organization Board of Director in 14 articles and 7 notes in 1388/08/09.

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