Central Securities Depository Of IRAN

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UNVEILING OF CSDI'S LATEST ACHIEVEMENTS, THIS TIME BY THE PRESIDENT!

Two major projects of Central Securities Depository of Iran are inaugurated, officially put into operation by President Hassan Rouhani on 1 December 2020.

Two major projects of Central Securities Depository of Iran (CSDI), including the Electronic General Meeting and the Comprehensive Dividend Distribution Systems, were inaugurated and officially put into operation by the Iranian President Hassan Rouhani at the Information Technology Executive Council on Monday 1 December 2020.

During the ceremony, Iranian Economy Minister Farhad Dejpasand said: "With the expansion of the capital market and the millions of stock exchange code holders and also due to the wide geographical dispersion of shareholders, we needed to hold electronic meetings of listed companies, so that there is no need for long distances to be taken by shareholders to participate in the meetings."

He went on to say: "Thanks to this system, we would not prevent corporate meetings from being held in a principled manner, and fortunately, both the ground for the electronic meetings and the necessary rules and regulations were provided."

As for the Dividend Distribution System, Dejpasand said: "Due to the dispersion of shareholders in different parts of the country, there is no need for them to bother to go the head offices to receive their dividends."

He added: "These systems have been set up to provide a range of specific services to shareholders of listed companies, government agencies, creditors and contractors."

Electronic General Meeting System has many benefits such as increased participation, possibility of cross-border voting and reduction in operational and travel costs.

With the introduction of the new provisions of the electronic general meeting of companies with foreign shareholders, it has become possible for foreign shareholders to attend general meetings from where they are located.

The groundbreaking system provides all stakeholders with the unprecedented possibilities of electronic presence in the companies' ordinary and extraordinary assemblies, as well as their voting electronically.

By making use of the newly developed system the shareholders will also be given due access to all related documents exchanged at the general meetings. The unprecedented services would support issuers in their performance, on one hand, as it provides shareholders with the opportunity to monitor the performance of corporate executives, on the other hand.

As for the Dividend Distribution through the comprehensive 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.

With the system officially in place, the shareholders will no longer need to refer personally to brokerage firms to collect their dividends, as thanks to this system, all profits would be deposited by the CSDI and be credited to their respective bank accounts already submit into CSDI's Comprehensive Information Gathering System (CIGS).

Although the CSDI, especially in recent years, has had great projects and achievements such as the release of "Justice Shares", but the official operation of the two major projects of the company by the highest executive official, proves another accomplishment by the company. 

The value of these important projects is doubled in the difficult conditions in the days of Coronavirus pandemic. 

Release Date: 2020-12-02