Central Securities Depository Of IRAN

In a strategic move to promote population growth and provide financial support to families, the Iranian government has launched a new initiative that grants financial benefits in the form of exchange-traded funds (ETFs) to children born since March 21, 2020. This initiative underscores the government's commitment to enhancing youth development and fostering long-term financial stability for families in Iran.

Overview of the Initiative

Under this plan, every child born after the specified date will receive ETFs. The initiative is part of a broader governmental effort to encourage family formation and economic stability by investing in children's future wealth through the capital market. The allocation of these ETF-based assets is designed to facilitate long-term wealth growth, ensuring that families can build a more secure financial future for their children.

Role of the Central Securities Depository of Iran

A key component of the implementation process is Central Securities Depository of Iran (CSDI). CSDI plays a pivotal role in managing the registration and identification of ETF holders through its Comprehensive Information Gathering System (CIGS), the main e-KYC system for participants in the Iranian capital market.

CSDI's Responsibilities

1. Registration Process: Parents of newborns are required to register their children on the government's national electronic service platform, known as the Smart Government National Portal. Furthermore, they must register the new ETF holders in the CIGS. This dual registration process ensures the accuracy and reliability of information regarding the beneficiaries of the ETF grants.
2. Facilitating Access: CSDI's involvement simplifies the process for families to access the financial benefits associated with their children's birth. By leveraging its robust e-KYC system, CSDI ensures that the identity of each ETF holder is verified, thus enhancing the integrity of the asset distribution process.
3. Support for Long-Term Wealth Growth: By managing the ETF assets, CSDI contributes to the broader goal of promoting wealth accumulation among families. The ETF investments are designed to provide long-term financial returns, which can significantly benefit families as the children grow.

Distinction from Previous Programs

It is important to note that this initiative is distinct from the earlier Justice Shares program, which focused on promoting equity in wealth distribution. The new plan specifically targets newborns, aiming to secure their financial future and encourage population growth in a country facing declining birth rates.

Legislative Backing

The initiative is supported by a set of new laws passed by the Iranian Parliament in 2022, aimed at reversing the declining birth rate over the next seven years. These laws encompass various measures, including health insurance for infertile couples, support services for working women, and resources for mothers and children in areas of health, nutrition, and education.

Conclusion

The launch of the new initiative to grant exchange-traded assets to newborns marks a significant step towards fostering economic growth and family support in Iran. The role of the Central Securities Depository of Iran is crucial in ensuring the effective implementation and management of this program, contributing to the long-term financial well-being of families and enhancing participation in the capital market. Through this initiative, the Iranian government aims to cultivate a more robust economic future for its younger generation while addressing pressing demographic challenges. 

Release Date: 10/16/2024

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