Central Securities Depository Of IRAN



Central Securities Depository of Iran holds a session to introduce its sandbox to a gathering of capital market and Fintech players.

Central Securities Depository of Iran held a session to introduce its sandbox to a gathering of capital market and Fintech players on December 16, 2019 at the Presidential Innovation Fund here in Tehran.[SA1] 

Addressing the participants, Alireza Mahyar, IT Consultant to CSDI CEO, said more than 2.5 million shareholders have registered in CSDI's new e-KYC system, Comprehensive Information Gathering System (CIGS) during the past year.

Emphasizing the need to develop services and applications to better serve the country's capital market, Mahyar said: "We currently have more than 12 million trading accounts registered in CIGS, however the market penetration factor needs to increase.

This is while, if the Justice Shares are released through the stock exchange based on the scheme, some 40 million more shareholders will join the previous number to open trading accounts.

The CSDI senior consultant went on to say that statistics show that since the beginning of this year, the number of people who have had at least one trade stands at 1.8 million people.

This, as some 1,400 people have engaged in more than 1,000 trades so far this year, with statistics showing that 92 percent of them have signed up to CSDI'S CIGS system.

About the CSDI's Investor's Platform, Mahyar added the most common reason shareholders referring to this Platform was for receiving minutes regarding corporate general assemblies.

He said dividend distribution taking place via CIGS was another factor warmly welcomed by market players mostly because it reduced commuting. According to Mahyar, as soon as this particular service was introduced, the number of people signing up in CIGS surpassed 7,000 from 2,000 people.

The CSDI senior consultant further evaluated the implementation of electronic General Meetings or e-GM as a basis for a stronger and effective presence of real shareholders.

Elsewhere in his remarks, Mahyar said it is estimated that more than 50 million people use smartphones nationwide and that is why lack of applications offering stock exchange-related services is strongly felt. This is currently more than 10 percent of the country's liquidity belongs to investment funds and we are determined to have these funds registered in CIGS.

Later on, he continued elaborating on the main activities of Central Securities Depository of Iran i.e. identity authentication, pre- and post-trade transactions as well as risk management.

Mahyar described authentication of Algorithmic customers via CIGS as the best option to promote performance and such transactions – in general – in the whole capital market. He added due to some difficulties in operating platforms in the country, CIGS is always ready to authenticate customers because it is not a problem with the platforms but it is these users that due to the lack of a proper KYC system face disruptions. "That is why we can reduce the problems of algorithmic transactions using CIGS," he added.

The advisor to CEO of Central Securities Depository of Iran then went on to speak on the position of Fintech (Financial Technology) in the Iranian capital market. "Considering different areas of Fintech, we can see their important role in different areas of finance. Meanwhile, the role of individual stock exchanges still needs to be developed," he said.

Also present in the session was Mojgan SafariMoghadam, the CIGS Project Manager. Addressing the gathering, she further elaborated on the mechanism of identity authentication of capital market customers via CIGS. She said there used to be several problems in the past but now people can easily have the job done through registering in CIGS. The data they provide would then easily be authenticated by higher official entities.

SafariMoghadam said those interested can either go to the official website of CSDI's Comprehensive Information Gathering System or CIGS at https://profilesejam.csdiran.com/, use a payment app or even mobile apps of some banks or brokerage firms.

She said the information provided by Iranian individuals will then be authenticated via National Organization for Civil Registration; foreigners by an official entity named Pajvak and legal entities via the Judiciary branch of the government.

Safari Moghaddam then acknowledged that thanks to the CIGS system the issuance of trading accounts have been reduced from 2 days to only 10 minutes thanks to easy information exchange which has ultimately led to better performance across the capital market, particularly for the startups.

Release Date: 2019-12-16