As with several emerging stock markets, the Tehran Stock market historically set several limitations on
foreign investment. With the growth of Iran’s stock market and the development of economy, the Stock
market Authorities have gradually relaxed these limitations on foreign investors. Since April 2010, the
process for investment by foreign investors in the stock markets has been changed from the ‘permit’
system to the ‘repatriation’ system. On 18th April 2010 Upon the recommendation of the Ministry of
Economic Affairs and Finance, and by virtue of the paragraph 3 of article 4 of the Securities Market Law
of I.R.I ratified in 2005, the Council of Ministers approved “The Regulations Governing the Foreign Investment
in the Exchanges and OTC Markets”.
This has consequently simplified the application procedures for foreign investment in Tehran Stock
According to Article 7 of this “Regulations” the restrictions imposed on the possession of shares by the
non-strategic foreign investors on every exchange or OTC market are set forth as follows:
The number of shares owned by the total foreign investors shall not exceed twenty (20%) percent of the
total shares number of the companies listed on the exchange or on the OTC market or twenty percent
(20%) of the shares number of any company listed on the exchange or on the OTC market.
The number of shares owned by each foreign investor in any company listed on the exchange or on the
OTC market shall not exceed ten percent (10%) of the shares number of such company.
Based on Article 4 the foreigners/ foreign entities shall have to submit the required information and
documents to the Organization along with an application based on the forms prescribed by the
Organization so as to obtain a license for trading in securities on every exchange or OTC market.
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