CSDI LAUNCHES COMPREHENSIVE E-SYSTEM FOR CASH DIVIDEND DISTRIBUTION
Head of the Central Securities Depository of Iran has announced the pilot launch of a comprehensive system for distributing dividends of securities across the Iranian capital market.
According to CSDI Chief Executive Officer, Hossein Fahimi, the comprehensive system has been started its operations by carrying out the electronic distribution of dividends equities belonging to Iran Energy Exchange (IRENEX) as well as those of Neyshbour Sugar Company among their respective shareholders in line with CSDI's efforts to provide the necessary infrastructure to address the major concern for the capital market participants in Iran.
"Generally, through the comprehensive distribution system, the shareholders' equity income including the corporate dividends, earnings per period and in different maturities, funds from the maturity of government bonds and even trade cash flows are to be paid in a centralized manner," Fahimi added.
He further said once the system has been officially in place, the shareholders will no longer need to refer personally to brokerages to collect their dividends, as thanks to this system, all profits would be deposited by the CSDI and be credited to their respective accounts.
Virtual Presence of Shareholders in Corporate Assemblies
According to Fahimi, the groundbreaking system, which will be officially put into operation in next few months, provides all stakeholders with the unprecedented possibilities of electronic presence in the companies' ordinary and extraordinary assemblies, as well as their voting electronically.
Fahimi also noted that by making use of the newly developed system the shareholders, besides these two possibilities, will also be given the due access to all related documents exchanged at the assemblies. He also said the unprecedented services would support companies in their performance, on one hand, as it provides shareholders with the opportunity to monitor the performance of corporate executives, on the other hand.
Transfer of Clearing Operation in Mercantile Exchange
The CEO of CSDI further said the related regulations on the transfer of clearing operations in the Mercantile Exchange to the Central Security Depository has long been delivered to the related bodies, with the necessary infrastructure including the manpower, hardware and software facilities has long been in place since long time ago, adding that he hopes that the transfer will take place by the end of the year after due coordination with the Mercantile Exchange as well as the Securities and Exchange Organization.
Fahimi concluded to say, by the launch of the system, whole settlement activities in Iran's all exchanges will be done, according to the latest global standards, through the Central Depository which mitigates the risks facing the shareholders.
Release Date: 2019-07-02