Tehran Stock Exchange: Repeated Transaction Of Rights, And Trading At T+1

Two new by-laws have been ratified by the TSE’s Board of Directors to be in effect in October:

1. As of October 29th, the rights issued by the listed companies due to capital increase can be traded repeatedly. Previously, the rights could be traded only once. Based on a new by-law, a certificate is issued for this new trading instrument, and rights can be traded repeatedly. This will increase liquidity while reducing price differences between shares and rights.
2. As of October 22nd, clearing is made possible at T+1 and trade is also possible on T+1. Previously, clearing was used to be done at T+3. The settlement period will remain at T+3. This makes the market more flexible to the investors.

Introducing these new by-laws is thought to increase transparency and feasibility of the market.