Central Securities Depository Of IRAN

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Hossein Fahimi: CSDI Unveils New E-Platforms to Provide Investors with Services at New Levels

Central Securities Depository of Iran Chief Executive Officer, Hossein Fahimi says the new versions of the electronic platforms developed by the company provide investors with a significant number of unprecedented web-based services to facilitate their activity in the Iranian capital market.

In a comprehensive conversation with CSDI's Public Relations Department, Hossein Fahimi outlined the new web-based services devised by CSDI, to the capital market participants at a new level. When asked, at the start of the conversation, about the major difference the new services are to make in the Iranian capital market, Fahimi said the electronic General Meeting service, as a section of DARA, will address major shortcomings of traditional way of holding general assemblies including common practice of skipping some items despite their inclusion on the meetings' agenda due to time constraints.

Fahimi added along with the major focal point of predicting and analyzing the market and ticker symbols, the post-trade activities as well as over-the-counter trades have gained significant importance and popularity among market participants in recent years, and CSDI as the sole body responsible for taking care of such settlement activities has offered new services to the capital market participants in order to tackle the long-running issues.

DARA Present New Platform to Track Capital Market

CEO said the new and updated investor's portal, dubbed as DARA, has been launched in June 2019 enabling the investors to monitor and keep the track record of capital market indices as well as of the ticker symbols.

Fahimi further said the integrated Investors portal which has been pilot launched consisting three sections, namely "DARA, DANA, and NAZER" to provide smooth access for investors and other participants to the Iranian capital market. However, before getting access to use this portal, investors are supposed to get registered in Comprehensive Information Gathering System (CIGS), launched in January 2019 to get investors registered as unique entities, to further facilitate their activity and future investment in the Iranian capital market.

Anywhere, Anytime Access to CSDI Service with DARA Mobile APP

Later in the interview, Fahimi said CSDI has unveiled a mobile app for DARA which enables the investors to access the services through a set of dashboards. The first dashboard provides the investors with access to their portfolios. Any given investor through the dashboard is able to see their related market data, including the latest information on the type of instruments, their volume and value, the charts and so on. Besides, the users will also have the ability to search through their portfolio history. By using the application, investors no longer have to personally refer to CSDI offices to get such services.

Fahimi also noted the second dashboard of the new mobile app available for the investors dubbed as "Trade Report". This dashboard is significant in the sense that in addition to providing fresh reports to the market participants, it enables investors to monitor brokerage firms' activities, increasing transparency, and helping avoid possible misconduct. This dashboard also provides details on the transactions on last trading day basis and has the capability to generate reports.

The third dashboard which is available to the market participants through the mobile app enables investors to access details and other information about companies' general meetings in a centralized manner. After the launch of the application, shareholders are now able to participate in the virtual general meetings and annual assemblies which helps level up transparency and efficiency slashing costs related to the organization of the meetings.

New Dividend Distribution System Pilot Launched Referring to the pilot launch of CSDI's new Dividend Distribution System (DDS), Fahimi said for the first time in Iran's capital market history, dividends were distributed electronically among over 9,000 shareholders of the Iran Energy Exchange (IRENEX) as well as 900 shareholders of Neyshbour Sugar Company in line with CSDI's efforts to address one of the major concerns of the market's stakeholders. Through the dividend distribution system, the shareholders' equity income including the corporate dividends, earnings per period and in different maturities, funds from the redeemed Sukuk are to be paid in a centralized manner.

Prior to DDS, the dividends used to be distributed in traditional ways which generally took more time and were costlier and exposed to human errors. All of these deficiencies made CSDI put devising an electronic dividend distribution system on its agenda.

Easy, Smooth Presence of Shareholders in E-GMs

Another feature of electronic General Meetings, according to Mr.Fahimi, is a special vantage point, which has been allocated to two inspectors elected among shareholders. Also, another special section has been allocated to the board members, along with the two elected inspectors. In the meantime, regulatory bodies including the Securities and Exchange Organization enjoys complete control over the implementation of electronic General Meetings agenda, additionally, special sections within the platform have been given to the Central Bank of Iran to monitor the electronic General Meetings to be held by member banks. These features aim to guarantee the transparency of the meetings and to ensure total compliance with the meetings' agendas.

CSDI Unveiling Delivery VS. Payment System by Year-End

Fahimi also broke the news that CSDI has plans to launch the settlement system of Delivery versus Payment (DVP) by the end of the year. Central Securities Depository of Iran has proposed the outlines and a blueprint of the DVP settlement system version III to the SEO board of directors so that the Iranian capital market is able to deploy one of the most modern settlement methods in the near future.

Latest Version of NetClear Provides New Features for Shareholders

The CEO of CSDI says a new version of NetClear system launched last year. The new version features the ID number of investors on any certificate issued for them. Other new features comprise detailed invoices for the depository and repository fees and as well as tax and VAT invoices for trade-related transactions for the investors.

NetClear incorporates two separate systems, the first of which is used for transferring data related to trades and certificates from the post-trade system to NetClear web portal and the second is used for issuing electronic certificates and customized reports for brokerage houses, clearing houses, and other market stakeholders, Fahimi added.

Issuers also can print their certificates for shareholders using the Cert Reporter software, Fahimi added saying that some unique features of this system are adding capacity to provide settlement services to a wide range of trades including oil futures, Musharaka Sukuk and other fixed-income securities at speed of up to 20,000 transactions per minute.  According to Fahimi, the newly added capabilities are on top of existing features of dematerialized reports of fees, end-of-the-day settlement activities, announcements, certificate

Release Date: 2019-06-03