Translated by IRAQdirectory.com - [7/14/2009]
The Iraqi Central Bank agreed to the request of Iraqi Stock Exchange to deposit government and semi-governmental bonds once they are issued and circulated in the market.
The managing director of ISX, Taha Ahmed Abdul Salam, said that the action aims to urge contributing companies to issue debt securities when they need liquidity, instead of increasing capital and causing stock price to drop down. He also referred to the adoption of rules for admission of new companies to work in securities mediation to develop trading activity in the market. Abdul Salam said that the financial investment system No. 5 of 1998 has been reformed to allow specialist companies to consider increasing their capital and develop mechanisms for implementation of their main tasks and functions, as well as stimulating the establishment of new companies with higher capitals to activate the investment.
Iraqi Central Bank and Association of Iraqi Banks adopted establishment of an investment fund dedicated to investing in stock market in a move to support investment.
The Central Bank adviser, Madhar Mohammed Salih said that talks are under way to activate the role of Iraqi Stock Exchange, as a secondary market, in circulating treasury securities and transfers issued by Central Bank and Government, especially after transition to using electronic trading in ISX.
Salih added, "the central bank is primary market which only works on issuing remittances, unlike the secondary market which deals in them in secondary sale and purchase transactions in addition to their discount and liquidation."
Salih clarified, "the Central Bank wishes that Stock Exchange to deal in securities like it used to do before it stopped." He hoped that the Stock Exchange would turn into "a market that deals in other than stocks in order to achieve significant benefits, especially with the lack of another organized secondary market in Iraq, and the cooperation between the private banks that make the purchase of securities does not exist."
Salih considered " the proposal to make the Stock Exchange deals in securities would be a quantum leap in the evolution of the market, which is still new, and if implemented will provide a big boost and huge liquidity."
The Iraqi Stock Exchange was established in 2004 and worked only in circulating the shares of the 91 contributing companies listed in it, in three manual sessions a week on Sunday, Tuesday and Thursday every week, and it only turned to using electronic trading in the middle of last April.
Prepared & Translated By:
IRAQdirectory.comTeam
Iraq Daily Business Updates
The Iraqi Central Bank agreed to the request of Iraqi Stock Exchange to deposit government and semi-governmental bonds once they are issued and circulated in the market.
The managing director of ISX, Taha Ahmed Abdul Salam, said that the action aims to urge contributing companies to issue debt securities when they need liquidity, instead of increasing capital and causing stock price to drop down. He also referred to the adoption of rules for admission of new companies to work in securities mediation to develop trading activity in the market. Abdul Salam said that the financial investment system No. 5 of 1998 has been reformed to allow specialist companies to consider increasing their capital and develop mechanisms for implementation of their main tasks and functions, as well as stimulating the establishment of new companies with higher capitals to activate the investment.
Iraqi Central Bank and Association of Iraqi Banks adopted establishment of an investment fund dedicated to investing in stock market in a move to support investment.
The Central Bank adviser, Madhar Mohammed Salih said that talks are under way to activate the role of Iraqi Stock Exchange, as a secondary market, in circulating treasury securities and transfers issued by Central Bank and Government, especially after transition to using electronic trading in ISX.
Salih added, "the central bank is primary market which only works on issuing remittances, unlike the secondary market which deals in them in secondary sale and purchase transactions in addition to their discount and liquidation."
Salih clarified, "the Central Bank wishes that Stock Exchange to deal in securities like it used to do before it stopped." He hoped that the Stock Exchange would turn into "a market that deals in other than stocks in order to achieve significant benefits, especially with the lack of another organized secondary market in Iraq, and the cooperation between the private banks that make the purchase of securities does not exist."
Salih considered " the proposal to make the Stock Exchange deals in securities would be a quantum leap in the evolution of the market, which is still new, and if implemented will provide a big boost and huge liquidity."
The Iraqi Stock Exchange was established in 2004 and worked only in circulating the shares of the 91 contributing companies listed in it, in three manual sessions a week on Sunday, Tuesday and Thursday every week, and it only turned to using electronic trading in the middle of last April.
Prepared & Translated By:
IRAQdirectory.comTeam
Iraq Daily Business Updates