The conditions on license granting and the continuation of broker`s activity

Posted on Posted in Business Guidelines

The applicant shall send his written application, according to determined samples in addition to required documents, determined by the organization Board of Directors to the secretary-general of the organization.
The applicant shall have Board of Directors with minimum 5 members. The members shall be B.A graduates or higher. At least two members shall be major in finance, accounting, economics, commerce or management. The applicant members of the Board of Directors shall have at least 5 years background in public management or 7 years working experience in financial, investment, credit or auditory companies and firms.
Broker`s Board of Director members shall have a good reputation and professional ethics in their experimental studies and shall not have effective criminal records.
The minimum capital required to get the brokerage license is five billion IRR.
Applicant for activity in Tehran must hold at least two branches in other provinces.
The broker should compensate for the losses that may result from his operation to parties to the transaction, in addition to depositing security in Iran’s central bank ,he shall deposit his share to the stock security account.
Following the approval of the eligibility of the applicant and chairman of the board or CEO by the Central Bank, Brokerage license will be issued by the board of the stock exchange. Then the brokerage company will be registered.
– All staff brokers, doing business with trading systems must have at least the certificate of brokerage basic principles.
The broker is obliged to pay annual membership fees and the fees related to the use facilities and services determined by The board.
Membership fees: the amount of money for brokerage activities in stock to be received as a member of the organization. The amount of membership fees is determined each year by the Board of Directors.
The broker cannot stop his activities without the consent of the stock market.