CSDI Unveils New Electronic Service for Financial Ability Certificates in Iranian Capital Market
Central Securities Depository of Iran (CSDI) has launched a new electronic service for shareholders in the Iranian capital market to help them obtain "Financial Ability Certificates" in a more convenient way.
The electronic service has been officially kick-started during a ceremony attended by senior Iranian officials on the sidelines of the 15th International Exhibition of Financial Industries (Exchange, Bank, and Insurance), held June 16-19 at Tehran International Fairground.
The traditional method of applying for the certificates by the investors and existing limitations in the issuance of the certificates has turned the process into a challenging and time-consuming undertaking for the stakeholders involved.
Therefore, CSDI has launched and completed the project of automating the issuance of financial ability certificates to facilitate the service and make it more convenient for all applicants as the financial documents are largely used by investors to prove their financial ability and show their financial status to international entities such as embassies and universities.
The new electronic certificates, like its traditional paper-based precedent, reflect the value of assets owned by investors and their record of trading activities in the Iranian capital market; however, the e-certificates, as their name suggests, are starkly different from their precedents when it comes to the mechanism for their application and issuance.
Before its official launch, the new electronic service had completed a pilot test, and with all technical glitches tackled, all shareholders are now able easily to register their requests through the CSDI's "Integrated Portal for Capital Market Stakeholders (DDN)", to get the electronic certificates in the portal's "e-service" section and even choose their desired certificates.
The new process has significantly streamlined the traditional method, with no additional bureaucratic documents are required from shareholders since the DDN system is directly linked with the “Comprehensive Information Gathering System (CIGS)”, known as CSDI’s reliable and unique KYC system for all entities active in the Iranian capital market.
The system is not still all electronic and once the request on the DDN portal is verified by CSDI staff, shareholders can immediately download the electronic version of their "financial ability e-certificates", available in two formats "Portfolio Statement" and "Transaction Summary Report".
The value of a shareholder's assets mentioned in the "Portfolio Statements" is the aggregate value of all listed shares owned by investors at the issue date of the document, while the "Transaction Summary Reports" provide information on the total value of trades and other details including buys, sales, as well as the number of trades conducted by the applicants in a specific time.
The electronic certificates do not bear a seal or signature, and their authenticity is verified by CSDI electronically.
The next steps would be one of the two options of linking the checking mechanism for particulars on the certificates with records of the Iranian relevant registration bodies, or AI will take over the process.
Release Date: 6/8/2023