The stock market has grown almost twice as much in the last two years in terms of the extent of trading, and many people and companies expect regulators to monitor movements in this market in a continuous and accurate manner, and violations from the real side. And respond legally to the law. In this analysis, we will deal with the quality of dealing with violations in the stock exchange organization. Please stay with Artan Press until the end.
*** Positive and negative days; Part of the nature of the stock market
Currently, one of the biggest concerns of organizations and activists of the stock exchange is the discussion of the growth of the stock index and the ups and downs that occur in this direction. The notion that the stock exchange always experiences evergreen days is an unrealistic and practical issue. It is impossible. Therefore, it is necessary to be aware of this issue and decide for the hard days of the stock market and determine the outlook, profit and loss limit in order to make the most of this market.
Along with the green and red days of the stock market, which is completely normal, but some movements are made from the real or legal side, which is against the real and stable path of the stock market. In this situation, the market watcher, by observing all the events and happenings of the trading day, decides to cancel some sales.
*** Parliament enters into stock market violations
Many measures have been taken in the parliament to prevent violations of legal shareholders, and the stock exchange organization has been asked to inform the parliament about the activities of legal shareholders after the approval of the marketing requirement in the Supreme Council of the stock exchange. The Securities and Exchange Commission, as a regulatory body, can use legal tools in certain cases. For example, an action such as reducing the range of fluctuations in certain market conditions that can distort the price trend.
In this situation, the stock exchange organization enters the issue and takes the fluctuation limit out of the usual range. Because if this action is not taken, we will see the rapid and emotional departure of the real ones and the heavy purchase of the legal ones. This is ultimately to the detriment of the real market activity, and the continuation of this trend could lead to protests.
*** Heavy legal sales; Disrupt the market order
One of the biggest violations we have witnessed in recent days has been the heavy sale of legal entities and their non-participation in many shares, which resulted in 60 days of negative market in the Iranian stock market. One of the main duties of legal entities in the stock market is to protect the assets and stocks of natural persons in unfavorable market conditions and they must stabilize the market by managing supply in one share.
But in the last two months, we have witnessed heavy sales of legal entities and lack of support for stock prices. Therefore, there was a rumor that many legal entities in the market entered the market with the aim of making a profit and creating false attraction to people in the days. Hardly left alone. In this case, which was mentioned in the explanation, a violation has been established and there is no place for defense, and almost everyone is aware of this issue.
*** Existing approaches to solving the problem of violations
Regarding such behaviors in the market, policymakers can take two approaches. One is to support the resolutions of the Supreme Council of the Stock Exchange, which in the current situation, there are also resistances against it. Unfortunately, the Exchange Organization did not show the necessary seriousness to follow up on the violations, and after continuous follow-up and the entry of the Tehran Prosecutor into the matter, they took the issue seriously, and only in the last week did the Exchange Organization announce and deal with some violators.
*** Prosecution enters into the discussion of stock exchange violations
With the entry of the prosecutor’s office into the issue of violations committed by lawyers, this issue is being pursued with more speed and accuracy. In recent weeks, we have witnessed gatherings of lost shareholders in front of the entrance of the parliament, and they announced that they encouraged all political and economic institutions to go and invest in the stock market, and now that this situation has been created, there is no support or effort to follow up. Violations do not occur. A list of 50 offending institutions, most of them law firms with large capital, has now been submitted to the prosecutor’s office to be dealt with.
First, the legal deputy of the Exchange Organization must deal with these institutions, and the prosecutor’s office has announced that it will deal with these institutions under the pretext of disrupting the country’s economic system. Of course, there is resistance in this regard, and this list was supposed to be presented a month and a half ago. Of course, the prosecutor has already announced that this list has not reached them yet.
*** The maze of stock market violations
It seems that the path of pursuing violations in the current situation is a tortuous and adventurous one, because the stock exchange organization itself, as a governing and supervisory body, is interested in many legal shares, and the behavior of this organization is likely. Ziad has caused the signal to leave the legal entities. But on the other hand, with the entry of the prosecutor’s office into this issue, we will most likely see the acceleration of this process.
This will increase the risk of legal violations for legal entities in the current situation, and we will see the maintenance of a balanced market in the coming days. We have to see where the actions in this area will lead.
*** Transparency of the stock market; Powerful market monitoring arm
One of the advantages of the stock market is its transparency and high observability. This market in all its periods, even when the market had paper financial statements, its information and statistics can be fully handled. Time is also a factor that plays an important role in this situation and environmental factors and sometimes violations that occur in the trading process do not affect it.
On the last Tuesday, when the market was green, at a certain time, some legal entities started to create a sales queue. They rejected and caused the market to collapse. This issue was not ignored by the market observer and we witnessed the cancellation of legal sales and the warning of the stock exchange organization to them.
*** Smart market monitoring with the help of data mining tools
With all the registrations and orders being electronic by the brokerages in the current situation, it is quite clear at what time and at what salary, and with the heavy supply, the market has fallen. Also, with the help of filters and data mining methods, the entry and exit of legal entities in each share can be carefully observed and evaluated. This means that even the five law firms that did so by the end of office hours are well known and must explain this action to the relevant authorities. The issue that Artan Press analysis team has investigated is that the prosecutor’s office and the legal assistant of the stock exchange organization are investigating some violations in parallel.
*** Exchange violations; As old as the stock market in Iran
The issue of stock market violations is not an issue that we have witnessed in recent years. Rather, this issue has a long history in the stock market in Iran. But thanks to the transparency of the stock market, many of the problems we see in parallel markets do not occur in this market. Because the market is completely transparent, the role of each individual, institution and those who intervened in the market and their intervention has disrupted the economic system is clear and can be examined.
In the meantime, the law is very important and their violations and deviations are very challenging for the country’s economic growth and national welfare. Legal entities should be seen as steel companies, banks, social security companies, in fact 90% of the country’s economy, and these companies are powerful economic institutions that can form the final structure of the country’s stock market.