Central Securities Depository Of IRAN

Central Securities Depository of Iran (CSDI) is a public joint-stock company serving as the backbone of the Iranian capital market. Established in 2005, CSDI acts as the sole registrar, depository, and clearinghouse for all financial instruments traded on the four major Iranian exchanges: Tehran Stock Exchange (TSE), Iran Mercantile Exchange (IME), Iran Energy Exchange (IRENEX), and Iran FaraBourse (IFB). This central role ensures the secure and efficient handling of pre-trade and post-trade processes for all market participants.

CSDI's Legacy: From Roots to Independence

While established in 2005, CSDI's roots trace back to 1967 with the formation of the Tehran Stock Exchange Brokers Association – the first entity in Iran's capital market. Initially handling all executive and supervisory responsibilities, the Association's role evolved significantly.

In 2005, the Islamic Republic of Iran Securities Market Act (SMA) transformed the market structure. The Tehran Stock Exchange Brokers Association was dissolved, and its regulatory and supervisory functions were transferred to the newly established Securities and Exchange Organization (SEO). This move created a clear separation between regulation and operations.

CSDI, meanwhile, became an independent entity under the SMA. As a Self-Regulatory Organization (SRO), CSDI operates under the rules and regulations set forth by the Iranian Parliament, the Securities and Exchange High Council (the capital market's macro-policy maker), and the Securities and Exchange Organization of Iran.

CSDI: The Engine of Efficiency in Iran's Capital Market

As the foundation of Iran's capital market, CSDI plays a critical role in streamlining and securing crucial processes. We leverage automation and cutting-edge technology to ensure the safe and efficient transfer of securities ownership and settlement of trillions of Iranian Rials in daily trades.

Technology is at the forefront of our operations. As the sole settlement agent, CSDI serves as a secure, fast, and cost-effective gateway for local and international investors. We ensure integrated securities settlement, speeding up the process, reducing risk, and lowering investment costs. CSDI facilitates the prompt and secure delivery of cash and securities between trading parties throughout the entire financial system.

Beyond settlement, CSDI manages a comprehensive suite of services that promote market transparency and efficiency. We run an electronic registration and recording system for securities, enabling electronic document filing and automated transfers of ownership. Among CSDI's innovative solutions are the indigenously developed e-KYC system (CIGS), the Integrated Electronic General Meeting Platform, and the Integrated Capital Market Stakeholders Portal.

Safety First: Protecting Your Investments

CSDI prioritizes investor protection. We actively manage systemic risks within the Iranian capital market to safeguard your investments. To mitigate settlement risks, CSDI maintains a robust collateral management system. This system ensures sufficient liquidity to fulfill any outstanding obligations, even in the event of an unexpected market event.

Empowering Iranians: The Justice Share Scheme

In 2020, CSDI played a pivotal role in Iran's landmark Justice Share scheme. This transformative initiative granted millions of Iranian citizens ownership stakes in state-owned companies, furthering the country's privatization efforts. CSDI's involvement significantly expanded our operations, requiring the development of a diverse range of new services to effectively manage this large-scale project.

A Collaborative Ecosystem: Our Stakeholders

CSDI thrives on a strong network of partners. Our core stakeholders include the four Iranian exchanges, brokerage firms, and a diverse range of market participants like local and international investors, issuers, mutual funds, investment banks, asset management companies, financial data processing firms as well as the Judiciary.

Shared Ownership: A Commitment to Stability

CSDI's ownership structure reflects its commitment to the Iranian capital market. The majority of shares are held by key market players, including Securities & Exchange Organization, exchanges, commercial banks, investment institutions, financial groups, brokerage firms, and pension funds. This collaborative approach fosters stability and ensures alignment with the interests of all market participants.

CSDI: A Global Leader in Collaboration and Innovation

Central Securities Depository of Iran (CSDI) has established itself as a respected leader within the global CSD industry. We actively engage with leading international organizations, fostering knowledge sharing and collaboration:

• World Forum of CSDs (WFC): We are a member of the WFC, a premier forum for CSDs worldwide.
• Asia-Pacific CSD Group (ACG): We hold board position with the ACG and actively contribute to shaping industry standards and best practices. Notably, CSDI's former CEO served as the vice chairman of ACG, demonstrating our dedication to leadership and collaborative progress. Our commitment extended beyond participation, with CSDI serving three terms on the ACG Executive Committee and hosting key events like ACG-CTS16 and ACG-GM20. We also ensured the Asia-Pacific region had a strong voice by representing ACG on the WFC Executive Board in 2019.
• Association of Eurasian Central Securities Depositories (AECSD): Our membership fosters regional cooperation and knowledge exchange.
• Federation of Euro-Asian Stock Exchanges (FEAS): CSDI has a longstanding and active relationship with FEAS. We previously served two terms on the FEAS Executive Committee, demonstrating our unwavering commitment to the Federation's goals. Currently, CSDI holds a seat on the FEAS Audit Committee, contributing directly to the Federation's transparency and good governance practices. Furthermore, CSDI leads the CSD, Pre-Trade, and Post-Trade Working Group, actively shaping best practices and fostering collaboration across these critical areas within the FEAS.
• Organization of Islamic Cooperation Exchanges Forum (OICEF): We champion regional integration through this forum, promoting investment opportunities and development across Islamic countries.

Building Strategic Partnerships for Growth

CSDI has built strategic partnerships with over 16 key counterparts from countries such as Japan, South Korea, Russia, Turkey, Switzerland, Greece, Taiwan, India, Oman, Yemen, Pakistan, China, and Indonesia These partnerships facilitate cross-border transactions, market harmonization, and the exchange of best practices. They ensure our services meet global standards, enabling seamless connectivity for investors and market participants.

Sharing Expertise and Shaping the Future

CSDI's commitment extends beyond participation. We actively contribute valuable insights and expertise across various domains. We are one of the few members participating in all ACG Working Groups and the Asia Funds Standardization Forum (AFSF). We share our knowledge through publications, presentations, and panels, shaping industry discourse and promoting thought leadership on a global scale.

CSDI fosters a robust ecosystem through its network of subsidiaries and partnerships

• Subsidiaries and Associates: CSDI plays a leading role as the parent company to SAMAT Samaneh (99.97%) and holds significant stakes in two associate companies: Capital Market Central Asset Management Company (49%) and Iran Financial Center (20%). These entities strategically align with CSDI's core mission of promoting a secure and efficient Iranian capital market.
• Strategic Partnerships: Beyond its subsidiaries and associates, CSDI collaborates with a network of strategic partners. This includes business banks, brokerage firms, and government service offices. These partnerships ensure seamless cooperation in critical areas like registry, KYC (Know Your Customer), and payment services.

CSDI maintains a strong presence throughout Iran

Our headquarters are strategically located in Tehran, the heart of the Iranian capital market. We also operate a branch office on Tehran's Saadi Street, ensuring convenient access for local partners and clients. Additionally, CSDI has established a representative office on Kish Island, a strategically important location within the Persian Gulf region.