The launching ceremony of short-selling of shares was carried out in the presence of Tehran Stock Exchange’s CEO, Iran Securities and Exchange Organization’s vice-president and Iran Fara Bourse’s CEO on Sunday, 23 February 2020.
Short selling mechanism, as a new financial instrument in the Iranian capital market was unveiled with the participation of eight companies at the conference hall of Tehran Stock Exchange building; but due to sanitary concerns and protecting public health against the widespread pandemic of coronavirus, the ceremony was held virtually and broadcasted online via TSE’s official channel on https://www.aparat.com.
The newly introduced mechanism has been designed for hedging market risks and helping investors gain when the market is bearish. Improving liquidity in the Iranian capital market and raising the companies’ capital are considered as the main purposes of launching the mechanism. This version of short-selling used in Iran is similar to conventional short-selling across the world, and the only modification is made as it has been adjusted by the Islamic Jurisprudence Committee of stock exchanges to comply with Shariah rules.
