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Iran: 50 companies in Tehran stock exchange to issue bonds

Tehran, June 6, IRNA --- Secretary general of Tehran Stock Exchange (TSE) said here Sunday that over 50 registered companies in the TSE have expressed interest to issue bonds by June 2005.

Hossein Abdeh-Tabrizi told IRNA the TSE is waiting for a government directive authorizing the issuance of bonds and will give permission to companies after reviewing their application.

He said that issuing bonds is a new and innovative instrument in the stock exchange which will add to the variety of products offered in the market therefore attracting more investors.

Abdeh-Tabrizi said the conservative investor can take advantage of such bonds which offer lower risk and guaranteed profit compared to stocks.

An economy official said here in March that foreign investors have expressed interest in investing in TSE.

Deputy Economy Minister and head of Iran Investments, Technical and Economic Assistance Organization Mohammad Khazaie said that, "So far, investments proposals to the tune of rls 25 billion have been presented to TSE."

The TSE officials are of the opinion that some restriction should be applied on foreign investments in the proposed executive bylaws pertaining to amount of profit repatriation and level of participation in the exchange, Khazaie underlined.

He said enforcing a ceiling on investments is another restriction necessary due to the TSE's unpreparedness to absorb a huge flow of funds.

"The process of foreign investments in TSE should be gradual and systematic," he added.

It is estimated that in the next two years TSE market capitalization will exceed those of the neighboring states.

... Payvand News - 6/7/04 ... --

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