Central Securities Depository Of IRAN

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7.2 Million Shareholders in 105 Listed Companies Receive Dividends via CSDI's Online Platform

Over 7.2 million shareholders have received cash dividends distributed through CSDI's Comprehensive Information Gathering System (CIGS) by early this year, a CSDI official revealed.

Director of Settlement and Payment Systems at Central Securities Depository of Iran, Hossein Qashami, has said out of 700 listed companies in the Iranian capital market, 105 companies have so far signed into the CSDI's CIGS system and by January 20, 2021, they have successfully distributed their shareholders' ‌dividends through the innovative platform. 

He said these figures clearly show enthusiasm among the public joint companies to use the CSDI's innovative platform. 

"Before the establishment of CIGS system, issuers had to pay dividends through traditional ways including the physical reference in banks; however, thanks to the launch of CIGS platform in 2018, CSDI has started to facilitate the payment of shareholders' dividends via the system since 2020. 

According to the Iranian Capital Market Law, the Central Securities Depository of Iran is responsible for settling transactions and paying dividends. 

In recent years, the entry rate of new investors in the Iranian capital market has increased more than tenfold with a company, for instance, used to have 40 to 50 shareholders last year, currently has around 500 shareholders and this is the reason behind the fact that, providing services through traditional banking methods is neither economically justified nor possible.

CSDI Future Plans on Online Dividend Payment

Mr.Qashami also reassured the market about the full readiness of the CSDI's infrastructure in the future to provide online services to all shareholders in the Iranian capital market, adding that all listed companies will be able to pay their dividends online through the CSDI's DANA Portal. 

CSDI's Director of Settlement and Payment Systems reiterated that the portal has also included an option for the payment of shareholders' claims from the past years in the case that they have not been converted into shares in the process of capital increase. 

According to him, the portal will become operational next year in case of the green light by the Iranian market top regulator, the Securities and Exchange Organization.

When asked about the timing of the full launch of online dividend distribution for all 700 companies in the capital market and when the service becomes compulsory for the issuers, Mr.Qashami noted issuers have welcomed the move and the rate of registering the information in DANA portal is steadily growing.

Also on the issue of fees that issuers are to pay for the dividend distribution, he reiterated that the fee determined by market authorities for this innovative solution is relatively low compared to the transparency it brings for both issuers and shareholders. 

Release Date: 2021-03-14