Founded in 2005 as a public joint stock company, Central Securities Depository of Iran (CSDI) is the sole registry entity and custodian in the Iranian capital market using the hybrid registry system with a fully dematerialized book entry system. Enjoying a history of 45 years, the Iranian capital market was demutualized in 2005 and as a result, CSDI was legally segregated from the rest of the capital market and commenced to work as an independent and separate entity. It is the central registrar and clearing house for all the exchanges in Iran including Tehran Stock Exchange (TSE), Iran Farabourse (IFB), Iran Mercantile Exchange (IME), and Iran Energy Exchange (IEE). It takes over the registry, clearing, and settlement issues related to equity, Islamic securities (Sukuk), derivatives, energy contracts, electricity, mercantile products by means of a full-fashioned registry system and multi-currency (USD, IRR, Euro) with a high netting efficiency of 85 percent. The prospects of CSDI are to prepare the infrastructures indispensible for the efficiency, continuity, and growth of the economy of the markets under its cover.
CSDI is the sole registrar, central custodian and clearing house for the Iranian financial market of four exchanges providing means for issuance, guarantees, settlement, and governance of various financial instruments from equity and ETF to Islamic securities like Sukuk and energy products based contracts and electricity.
CSDI is in fact the official data provider, the official counterparty to jurisdiction, and it serves as a gateway and platform provider for the international investors. Responsible for taking care of post-trade-related tasks, ranging from the deposit and registration of securities to the clearing and settlement of the transactions carried out in the financial market, it plays a significant role in managing systemic and systematic risks. To this purpose, CSDI has designed and launched the service of Settlement Guarantee Fund (SGF), along with other measures, towards managing the risks related to the clearing house. Taking advantage of SGF service, the investors can to a large extent be assured of the fact that in case a party fails to meet the trade settlement obligations within the set time, the clearing house will be able to fulfill the obligations of the defaulting member within the settlement day. As an infrastructure provider for the Iranian capital market in terms of financial and technological services and efficiency for the market practitioners, CSDI plays a very salient role in the Iranian capital market. Also as a key institution for the capital market, CSDI acts based upon the rules and regulations passed by the Iranian Parliament, the High Council of the Iranian Capital Market, and the Securities and Exchange Organization of Iran as the supervisory and regulatory body of the whole capital market of Iran
The structure of the capital market in Iran and the status of CSDI, based on the present definitions in the Securities Market Act of the Islamic Republic of Iran, the Law for Development of New Financial Instruments and Institutions and the common norms in the capital market in Iran, are shown in the following chart:
The major companies of whose shares CSDI has the main shares include:
Samat Samaneh Company: CSDI has 99.98% of the share of this company which indeed provides IT professional services of CSDI.
Capital Market Central Asset Management Company: CSDI has 49% of the share of this company which provides diverse services to the intermediary institutions in charge of issuing Islamic financial instruments.