Iran’s OTC market IFB is ready to accept knowledge-based companies. Small, medium and knowledge-based companies can be presented from the start point in IFB, said CEO of IFB, Amir Hamooni.
An independent auditor under the supervision of Securities & Exchange Organization should assess these companies for entering IFB and report to the Board of Directors, shareholders and the committee. This is the requirements for the presence of small, medium and knowledge-based companies in IFB.
The old requirements for entering in IFB have been improved, “There is no longer the need of companies having three years experience or three years of profitability to be present in IFB. Even unprofitable companies can enter IFB,” added Hamooni.
It is necessary for small, medium and knowledge-based companies to submit a positive roadmap as a report to IFB. The advisor and the board of directors must approve the report; and before setting up the price, they should publish the information of the company to the public. In this case, investors and brokers can set the price of the company’s shares.
Regulations for entering IFB was approved and will be announced in the next couple of days.
According to this rule, applicant companies can participate in a recently launched panel named SME, to provide a special section for their market using this board.
“Through this project, companies can enter the capital market. These companies are accounted for half of the country’s economy. This project was a necessity for SMEs,” said Maryam Nazari, project manager of SME.
IFB signed a memorandum of understanding with ISIPO (Iran Small Industries & Industrial Parks Organization), under the supervision of SEO (Securities and Exchange Organization) and ISIPO. According to this MOU, ISIPO provides a list of small and medium companies for IFB to assess them in trading based on the SME project.
She also mentioned that the goal of this market is to not trade the company’s stocks since there are no IPOs. But rather the objective is small, medium and knowledge-based companies to enter the capital markets and grow in order to find their place in the economy of the country.
10% exemption for knowledge-based companies
Ali Amiri, deputy manager of IFB mentioned that launching Venture Capital firms is one of the initiatives that is done for small, medium and knowledge-based companies in IFB.
He continued by saying that setting up this fund was studied in February 2016 and these days all the regulations are set and applicant companies can provide their requests to Securities and Exchange Organization to set up such a fund.