By Maryam Nabipour – On Ordibehesht 18 this year, Tehran Stock Exchange hosted the first national conference “Smart Economy and Financial Development” in the country. In this conference, which was held with the presence of the Chairman of the Securities and Exchange Organization, the CEO of the Tehran Stock Exchange, the Chairman of the Financial Association of Iran, the Chairman of the National Development Fund, the Chairman of the Special Commission for Growth and Production Growth, the activists of the country’s knowledge-based ecosystem, etc., in the form of numerous speeches, The concepts, theories and functions of the smart economy and the challenges of financial development in the smart economy, the experiences of other countries in making the economy smart and the structural requirements of financial development in the smart economy were very practical. What follows is a selection of the materials presented by some of the guests of this conference.
The development of the financial sector as one of the sectors of economic development can play a fundamental role in equipping financial resources to increase domestic and foreign investment. From this point of view, it seems that the solution to achieve positive economic growth in the country should be sought in financial development. On the other hand, the smart economy is one of the economic fields that, despite its high capabilities, has not yet been welcomed as it should be in the financial markets and in particular, the capital market.
Focus on creating a smart business environment
Dr. Majid Eshghi, the head of the Securities and Exchange Organization, at the beginning of his speech, emphasized the need to pay attention to the discussion of the “smart business” environment, before addressing the “smart economy”. It is necessary to pay attention to this matter in the field of policy making as well as in the field of implementation.
The head of the Securities and Exchange Organization identified factors such as cultural issues, policies implemented in some governments, etc. as the reason for the strong presence of people, especially small shareholders, in the capital market and said: During the past few days, sometimes 400 to 500 thousand people have traded in the Iranian capital market, while this number in many other stock exchanges corresponds to the number of all investors present in those markets.
We need to institutionalize the financial markets.
According to Dr. Eshghi, equity of justice is one of the concepts that have brought most of the people to the capital market and investment discussions, either intentionally or unintentionally. Therefore, in my opinion, we should focus more on the financial market of the people’s organization regarding the coordinates and requirements of this market.
he added: It is necessary to somehow emphasize the democratization of finance in the capital market, the way to attract the participation of small capitalists in this market in the fields of transactions, supervision and corporate governance. Previously, when talking about the goal of financial management in companies, increasing the wealth of shareholders was a priority, and for this reason only attention was paid to stockholders, but it seems that now stakeholders in a company mean stakeholders or all people. And the organizations that are related to that company in some way are also mentioned, and it can be said that this is the basis of the formulation of corporate governance guidelines. In this instruction, we deal with the issue of balancing the interests of different stakeholders of the company and we try to prevent different stakeholders from encroaching on the rights of others, especially minority and minority shareholders, due to the powers they have in different companies.
The head of the Securities and Exchange Organization said: In line with the realization of this goal, the importance of the discussion of people’s institutionalization of the capital market and financial markets multiplies. In this regard, it is necessary that we change our regulations and instructions in different areas in a way that the role and influence of all these stakeholders are included in them. For example, one of the concerns of the Supreme Council of the Stock Exchange regarding Adalat shares is how to transfer the managerial and ownership will of 50 million Adalat shareholders to capitalized companies.
he added: I hope that this issue can be realized based on the new regulations and using the platforms of smart economy. We can safely say that almost no action has been taken in this direction so far, and we need conceptual and technical models to transfer the managerial will of justice shareholders, and this is an issue related to the whole economy and not just justice shareholders.
We are waiting for solutions from scientific authorities and universities.
Dr. Eshghi further stated: God willing, with the help of scientific authorities and universities, we will share issues like this, which are considered to be a concern of the capital market, and in this regard, I invite the Iranian Financial Association as a scientific center to provide solutions in this regard. This issue is related to the access of investors and capitalists to investment options as well as the access of economic enterprises to financial resources, and it can be said that it is considered a two-way issue. In discussions such as intelligentization, we have made good progress both in regulatory areas and in the field of crowdfunding, we have a very acceptable performance, but there is a long way ahead and in this way, we need tools to respond to this volume of the population that is in have appeared in the capital market and they mainly hold shares directly. This is despite the fact that we cannot ignore the tools that are created in networks and virtual space, and ignoring them is an example of whipping the waves of the sea.
He invited scientific authorities: Help us with the concepts related to democracy and publicizing the financial markets; Because we definitely cannot achieve our desired results with old tools in different fields.
The government’s approach to the capital market is a supportive one.
Dr. Eshghi said: Based on the meetings we have had and the numerous negotiations we have conducted, this market is always supported and counted on as one of the reliable markets for attracting capital and financing production in the private and public sectors. The government’s strategy is to develop the capital market in such a way that it plays an important role in the financing of all projects, whether in the private sector, companies in the Tehran Stock Exchange or over-the-counter in Iran, or projects outside the stock exchange, therefore, the capital market is absolutely necessary in this regard.
The head of the Stock Exchange and Securities Organization emphasized: Certainly, the organization has not played a role at any point, either in the rising or falling of the index, and as we have said many times in relation to other markets, we believe that no market can be governed by orders. Naturally, all market makers and market makers are required to fulfill their obligations in any situation of the capital market, and the Securities and Exchange Organization does not have and does not have any requirements beyond their obligations regarding market makers. On the last day, the market operators bought nearly one thousand billion tomans and stabilization and development funds were also active in the market according to their instructions. Fortunately, considering the market conditions in the last 3 months, these funds have very good resources that they use to support the market.
he added: When the market moves in one direction for a period of time, we should expect to recognize profits, which is what happened, but keep in mind that market fundamentals will definitely be of interest to analysts and companies’ 12-month reports are coming up. The reports related to the production and sales of the companies in April have a significant difference from last year and it can be said that the conditions are promising.
Capital market, the best available option for liquidity management
The head of the Securities and Exchange Organization explained: We strongly believe that currently the capital market can be the best option for directing liquidity towards productive activities, and for this reason we have detailed plans regarding initial public offerings, joint stock companies of the project and the launch of various funds, but due to the time-consuming nature of some processes Related to each of these cases, they need more time.
He emphasized: Since our priority and main mission in the capital market is to direct liquidity towards production, if in 2019 at least half of the resources entered into the market were directed towards productive activities, then after 2.5 years, we are waiting for the fruition of those projects. We believed that this would help increase the profitability of companies and improve the market situation.
Dr. Eshghi said: This year, we are seeking to encourage companies to increase capital through cash contributions or forfeiting the right of first refusal, so that resources can be directly entered into the companies. We are also consulting with large, small and medium-sized companies, as well as in the field of knowledge-based companies, so that the financing of groups that have economic plans and these plans can be justified, can be done quickly both in the field of capital securities and through debt securities. Although in the last one to two years, we have had days when the resources of the protection funds were close to zero, but now we do not have such worries and the protection funds have good resources.
The head of the Securities and Exchange Organization asked investors to buy and sell more carefully. He added: The market was slightly behind the parallel markets and some investors made good profits from investing in the market in the last 5 months. he added: It is natural that some investors of this market go towards profit recognition and nothing strange has happened in the market. The statistics published by the companies on the Kodal website for April shows a good growth compared to April last year, and the 3-month reports at the end of the year were also relatively good. Although these fluctuations are part of the essence of the market and no market moves up or down constantly, but sometimes these fluctuations; It is more than expected that these emotions should be controlled with the participation of all market participants.
We will continue to invite indirect investment in the capital market
Dr. Eshghi explained: One of the topics that was discussed last year and we will continue it this year is the discussion of indirect investment as one of the needs of the market. Also, since the amount of assets of investment funds in stocks and special portfolios has increased greatly compared to last year, and due to the creation of diversity in investment funds, God willing, we will offer a supplementary pension fund within the next month.
he added: There are many calls for the establishment of supplementary pension funds, as the current state of pension funds does not seem to be useful in the future. We believe that if the resources of investment funds are invested in this market in the long term, after 10 to 20 years, they will definitely remove such concerns about the future, and it seems that this fund will be welcomed by many employers and employees. took
The need to create a dialogue between knowledge-based companies and the capital market
Dr. Gudarzi, the CEO of Tehran Stock Exchange, while expressing gratitude and thanks to the Iranian Financial Association for holding the first Smart Economy and Financial Development conference, explained: In my opinion, this conference is in line with the vision that we started last year, on July 22, with the conference of knowledge-based companies. In this regard, creating a dialogue between the capital market and knowledge-based companies will be very prosperous for all of us and, God willing, will add to the richness of our work.
Referring to the digital revolution as the fourth revolution in the world, the CEO of the Tehran Stock Exchange said that the reason for the approach of the Tehran Stock Exchange and the Securities and Exchange Organization to pay attention to technological companies lies in this point. he added: Currently, 4 out of the 5 largest companies in the world are active in the field of technology, while in 2006, only one company out of the 5 largest companies in the world was active in the field of technology. Currently, more than 60% of businesses are conducted electronically, and the penetration rate of mobile phones, internet, etc. has caused an uproar in the world.
He continued in this regard: Interestingly, the companies active in the fields of knowledge and technology have risen in the composition of the world’s largest companies in a strange way, so that 5.22% of the weight of the S&P index in the world and 25% of the Euronext market value are allocated to the field of technological companies. In 2021, about 26% of all initial offerings in all stock markets of the world were in the field of technological companies. Dr. Gudarzi further pointed out the effects of the digital revolution on the financial markets and added in this regard: They don’t design signs for technological companies in the world, and we don’t think about this in Tehran Stock Exchange either. We believe that those active companies in the field of technology that enter the capital market should have an index, and we are deeply looking for this to be implemented in the Tehran Stock Exchange.
Building trust between economic governance and knowledge-based companies
The CEO of the Tehran Stock Exchange, referring to the increase in the penetration rate of mobile phones, the Internet, etc., announced: In spite of this increase in the penetration rate, our economic governance has not taken any action to formulate laws and regulations in this regard, and the new approach of the Securities and Exchange Organization and Tehran Stock Exchange Company to correct the existing trends between economic governance and knowledge-based companies also goes back to the same issue. . God willing, holding such conferences will help to improve the current situation.
Dr. Gudarzi mentioned the design and introduction of new financial tools and continued: The Tehran Stock Exchange and the Securities and Exchange Organization have made continuous and daily efforts to bring the discussion of new financial instruments to an early conclusion since the beginning of March, when the trend of the capital market and the flow of liquidity into the market were strengthened. It should be noted that single-share futures and the hedge fund, which is one of them, will be implemented soon.
Provincial visits of Tehran Stock Exchange to identify the opportunities of each province
CEO of Tehran Stock Exchange said: Another new thing that has happened in Tehran Stock Exchange is the provincial visits that started last year with Kermanshah province. Unfortunately, in the past years, there have been weaknesses in identifying the capabilities, opportunities and facilities of the provincial centers, but our regional forums are gradually becoming active in this regard.
Dr. Gudarzi continued: Yesterday, the acceptance board of the Tehran Stock Exchange agreed with the financing of 3,500 billion tomans for the first public joint-stock company of the project, and the follow-up will be done soon. It should be mentioned that the activity of this company is based on knowledge in the field of fuel and design of bioethanol green fuel.
CEO of Tehran Stock Exchange noted: Considering the current situation of the capital market, in my opinion, what happened in the past few days was an emotional reaction, and in this regard, I hope that respected investors, especially investors who enter the market with little capital, do not make emotional decisions and invest in financial institutions. with a license from the Securities and Exchange Organization to refer to their analysis as a criterion for their decision.
He expressed his hope that they will be able to continue the path of creating discourse in July with the discussion of corporate governance in the field of knowledge-based companies and other stock market publishers, and that this path will continue every year until the entry of knowledge-based companies into the capital market becomes a normal routine.
Focus on the development of smart economy financing
Ali Namaki, the secretary of the Iran Finance Association, said: The Iran Finance Association is trying to pursue the concept of smart economy in the country’s financial markets in a structured and targeted manner.
The secretary of the Iranian Financial Association stated that the smart economy is an economy based on the development of economic capabilities and not necessarily a central resource, and pointing to the fact that one of the important capabilities of economic development is the ability to finance, he continued: According to the goal of the Iranian Financial Association, which is to create a connection between the profession and financial science, we are trying to focus on the financial development of the smart economy, while using the presence of people active in the financial industry, economy, and of course the digital economy, for the future. Let’s talk about the financing of the smart economy.
Dr. Namaki, while expressing his hope to hold this conference every year in the Iran Finance Association, added: We at the Iran Finance Association seek to continue this path by focusing on the development that takes place every year in the field of financing the smart economy, including the fields of digital economy, knowledge-based economy, etc.
Establishing a relationship between the government and the private sector, in line with the development of the smart economy
At the beginning of this conference, Reza Rai, the head of the Iran Finance Association, gave an explanation about the issue of smart economy. The role of governments is one of the factors affecting the level of intelligence of the economy of any country. Governments in some countries are so-called super-active, which means that they themselves are the drivers of this issue and set the direction themselves. In some other countries, the governments are active and try according to the conditions, and in the meantime, sometimes the governments are passive, but it should be kept in mind that the passiveness of the governments does not mean that artificial intelligence and economic intelligence will wait for them, and this issue will be sooner or later. Soon, it forces governments to move in this direction. he added: We hope that the approach of the government in our country is not of the third type; Naturally, if this is the case, individuals and organizations will be much ahead of the government and will follow the government. In organizational discussions, a company can survive if it has an intelligent response to environmental changes, and this issue is also true in relation to our companies. In this regard, instead of looking for the change that has started, we can be the promoters of this change and start the transformation ourselves, but currently, some of these changes in some companies of the country, which happen to be a number of them. are present in this conference, it has started. It can be said that despite the fact that many existing regulations in this field are not serious, these companies have made efforts in this field and have achieved results. The head of Iran Finance Association explained: In the discussion of smart economy, very serious measures have been taken at the international level. For example, our country is far from the optimal point in discussions of electronic banking or risk that is tied to intelligence. Unfortunately, we still haven’t been able to close the mentioned gap and this requires the government, companies and institutions to act. he added: The effort of the Iranian Financial Association has been to improve this atmosphere by holding such a conference. In this regard, in this conference, the market activists who are active in the fields of startups or artificial intelligence, and have taken a major part of the market, have a serious presence, and along with them, we asked the country’s governing officials to be present, in In this regard, people from the capital market, the parliament, the National Development Fund, etc. participated in this conference.
An increase in intelligence leads to a decrease in corruption
This university professor said: Universities and knowledge-based companies that are active in these issues are also discussed. At the level of universities, we at Tehran University ask the professors of some classes to raise some topics, including cryptocurrencies, with students in accordance with current science. Referring to the changes that are taking place in Tehran University, he announced: We are trying to create a field called fintech in Tehran University along with other financial fields; That is, it is necessary that the universities or knowledge-based companies provide the necessary knowledge base, and the government is also responsible for providing the executive and legal base, and we hope it will go in this direction, because the more intelligence increases, the lower the amount of corruption and violations and abuses in the country.
Increasing intelligence is necessary to protect the interests of all stakeholders
ُThe faculty member of Tehran University explained: With increasing intelligence, naturally, in a market where there is no bubble, there will not be a very strong fluctuation, unless some people have taken actions by manipulating that market; Therefore, if we want to support the interests of individual shareholders and market participants, intelligence can help us, that is, intelligence is a tool that is easily available to human societies. A person, if he uses the right information and there is intelligence in that system, can distinguish between professional and unprofessional actions. He added: We believe that nowadays intelligence is intertwined with human life and cannot be separated in any way. در اقتصاد و بازارهای مالی هم به همین صورت است. We hope that we can at least provide a platform by holding such conferences so that this intelligence penetrates to all levels of organizations, institutions and companies, and we naturally hope that it will also receive the support of the government. In fact, if intelligence comes to our aid, our government, market and organizations will become more efficient.
A smart economy leads to a smart society
Dr. Raei emphasized: We seek to create a relationship between the government and the private sector in the direction of developing a smart economy, and conferences like this can improve such an environment. We hope that after this, we will receive good feedback so that we can have smart institutions along with the smart people we have in the society, who are among our professionals, and through that, we can achieve a smart economy and finally a smart society.
The low share of the digital economy in the country’s GDP
Ali Fayazbakhsh, CEO of Sarava Company Also, in this conference, three topics will be examined, “Digital economy and its share in GDP from an international perspective and with a focus on Iran”, “The position of digital economy in the financial markets of the world and in Iran” and “The benefits of investing in this area for the people and The government creates payment. Referring to a comprehensive definition of the digital economy, he stated that currently the equivalent of 15.5 percent of the world’s GDP is the digital economy, while the share of the economies of China and the United States in the digital economy is about 30 and 21, respectively. It is 6.0%. Interestingly, the share of this sector of the economy in the world also has a growth of 2.5% compared to other sectors. According to Fayaz Bakhsh, the share of the digital economy in the UAE is currently equal to 7.9%, and the goal of this country is to make the digital economy equal to 19.4% of the UAE’s GDP for the next 10 years. Meanwhile, the share of the digital economy in Iran’s GDP was equal to 2.7% in 1401, and the target of the 13th government was to increase this share to 10%. CEO of Sarava said: The issue of investment is one of the main issues related to the development of the smart economy and is considered one of the serious origins for attracting micro-finance resources in the financial markets; Therefore, the connection of these two fields, in the sense of attracting micro resources to acquire long-term benefits in the economy, based on the field of smart economy that increases productivity and helps to increase the GDP, is a lucky and auspicious event, and in this regard, I would like to thank those involved in this matter. I’m saying Dastmarizad convention.
Recognize intangible assets
he added: One of the general concerns in the field of digital economy or smart economy is that this economy is not based on physical assets and is based on intangible assets that generally arise from the knowledge and experience of that business, and the traditional concern in this field is that only assets Visible and physical can be reassuring for investment. This is despite the fact that in today’s world these intangible assets are the ones that create significant value. Now, if we can establish a balance between this traditional concern and also the serious global trend, we have been able to win this field; Therefore, along with applying these considerations, it is necessary to create a new world in which we recognize intangible assets that are based on knowledge.
Trying to reveal the impact of knowledge-based companies on the macro economy
Engineer Masoud Vakilinia, CEO of Farda Communication Holding, also stated: Knowledge-based companies are drivers of other companies in all countries. At the international level, this issue has had a significant impact on their GDP in countries where knowledge-based companies and startups have grown and matured and have a favorable presence in the capital market and has resulted in their growth and maturity. This process has also started in Iran, as we have seen the first knowledge-based company in the stock market since last year, and it seems that this year will be a good year for knowledge-based companies. he added: Practically, with the presence of knowledge-based companies, the knot related to the financing of these companies and earning money by VCs will be opened, and God willing, we will witness the growth and development of this field. The CEO of Farda Farda Holding said: With the presence of elites and influential figures in the fields of finance, fintechs, startups, etc., the exchange of votes will be facilitated in such cases, and the result of this exchange of votes will help the faster supply of startup companies to the Tehran Stock Exchange or the Iranian OTC and the financing of these companies. In general, this action will be effective in revealing the impact of knowledge-based companies in the macro economy of the country.
We are trying to become the driving force of the knowledge-based economy
Dr. Mohammadreza Hamidi, vice president of innovation and knowledge-based economy at the Social Security Investment Company (Shasta) also stated at the beginning of his speech in this conference: در حوزه محتوا و شناسایی مسئله، نقطه زنی دقیقی انجام شده بود و در اجرا نیز میتوان گفت شاهد همایش بینظیری بودیم. In fact, the issue of smart economy was a key issue that was prioritized with a smart and accurate choice. He said about knowledge-based economy, smart economy and its interaction with financial markets: Although in the past, the road that leads the knowledge-based ecosystem to commercialization and the final stages of financial maturity was practically a dead end, but with the moves that have been made in recent years and the events that are going to happen in the coming months, during which the technological and innovative companies of the country enter the capital market, this connection is being formed and in other words, this blocked street is opening. It can be said that this incident was the key bottleneck of the country’s knowledge-based ecosystem during the last few years, due to which it could not connect its circle to external circles and industries. Shasta’s vice president of innovation and knowledge-based economy stated: The Social Security Investment Company has also come into this and is trying to become the driving force of the knowledge-based economy in the country. he added: In this regard, we have a transformational strategy so that we can become the largest investor in the knowledge-based field in the country and provide conditions to use the capacities of the country’s knowledge-based ecosystem to solve technological issues and develop Shasta’s technology level. In this regard, we have made good planning and efforts in this area and we hope that its effects will be seen in the near future.
Not to mention topics such as “Government and financing of the smart economy”, “Smart economy and the predictability of financial and economic variables”, “Analysis and introduction of new financial development tools in the smart economy”, “Banking system and the smart economy”, “Fintechs in the economy” Smart”, “Capital Market in Smart Economy”, “Insurance Industry and Smart Economy”, “Corporate Governance and Smart Economy” were other axes that were discussed during this conference.