Based on this by-law, foreign individuals and institutions shall invest in the TSE after receiving license from “Organization for Investment, Economic & Technical Assistance of Iran (OIETAI)” – an affiliation of the Ministry of Economic and Financial Affairs.
Three licenses have been granted from OIETAI so far for foreign investors. The Lebanese investors established a company in Iran with 100 percent capital ownership. The amount of investment will be $50 million. Future Bank of Bahrain and Asian Capital Partners (ACP) from Hong Kong were other institutions that have granted licenses to start portfolio investments in the TSE up to 100 million Euros each.
Currently, there are several foreign investors in the TSE, shareholders of some listed companies, but they are not allowed to manage their own portfolio; they have invested as “foreign direct investment” to have managerial roles in listed companies which is allowed under current laws.
Some restrictions forecasted in the FPI by-law; foreign investors shall invest a maximum of 10 percent of each listed company, and, they shall not withdraw their main capital and capital gain at the first three years of their investment, while repatriation is possible under current regulations. Such restrictions are not mentioned in the by-law for “Foreign Direct Investment”.
