India Allows Investment in rupees in Iran

India Allows Investment in rupees in Iran

Indian government sources have said that New Delhi has recently allowed investment in Indian rupees in Iran, the Again Age reported on Friday.
The announcement was made simultaneous with Iranian President Hassan Rouhani beginning his visit to India from Hyderabad on Thursday.
Sources said this will not violate U.S. sanctions on Iran since transaction will not be in U.S. dollars. The Indian move will hugely help the Iranian economy as it will draw in more Indian investment into Iran.
If an Indian businessman wants to invest a certain amount in rupees in the bona fide concerned Iranian account in one of the Indian banks and the equivalent amount of Iranian rials will then be deposited in the venture in Iran, sources said.
India’s contribution to the development of Iran’s Farzad B gas field in the Persian Gulf and its operation of Chabahar Port in southeast of Iran are among the issues to be discussed between President Rouhani and Prime Minister Narenda Modi on Saturday during delegation-level talks.

Iranian Government is to Sell its Shares in Thermal Power Plants

Iranian Government is to Sell its Shares in Thermal Power Plants

Iran’s state company in charge of thermal power plants has announced that it is planned to reduce the government’s footprint in the key energy industry through selling a part of its shares in such power plants.
In this regard, Mohsen Tarztalab, TPPH’s Managing Director has stated “Thermal Power Plants Holding Company aims to sell stakes in an undisclosed number of power plants with a combined installed production capacity of 11,570 megawatts to the private sector”. He has also added “Four power plants have been listed by Iranian Privatization Organization for sale and the outcome of their tenders will be publicized on Feb. 13”. Such four power stations planned for sale are located in the northern Gilan Province, Semnan Province east of Tehran and the East Azarbaijan Province.
And perhaps the most important part of Mr. Tarztalab’s speech was that there is no restriction on foreign investors taking over Iranian power stations which offers a great opportunity for foreign investors to secure a strong foothold in Iranian energy sector.
In general, the divestment program will account for nearly 15% of Iran’s total installed power generating capacity that stands at 77,000 MW. The efforts are aimed at breathing new life into an aging power industry that is overshadowed by state control over most of the production and supply chain, a lack of investment and ballooning debts to power plant operators.
TPPHC is in charge of developing 7,000 MW of gas-powered units in Jahrom, Sabalan, Kashan, Urmia, Chabahar and Asalouyeh combined cycle power plants as well as completing Parand Power Plant south of Tehran.
Iran requires increase in power generation capacity to shore up domestic power supply and increase electricity exchange with neighbors as part of it strategic scheme to establish a regional power network throughout the Middle-East.

Energy Department

International Power Generation and Turbo Machinery Exhibition and Conference 2018

International Power Generation and Turbo Machinery Exhibition and Conference 2018

Tehran is scheduled to be host of the first International Power Generation and Turbo Machinery Exhibition and Conference, also known as IPGTEC 2018. The event will be held in Tehran International Fairground from March 2 to 5. IPGTEC is a platform in which power industry meets the flow of information on modern power generation and achieved technological advancement. It also provides an opportunity for scientific society to discuss the newest findings and promising ideas on eco-friendly approaches of power generation as well as potential challenges. For the ones who are involved in energy industries, this event is a good chance to discuss solutions for advancing future of energy in Iran and the region.
The participants of this conference are more than 100 Iranian as well as foreign companies. Italy, the Netherlands, Germany, the United Kingdom, Japan, Belgium, Taiwan and China will participate in the event to showcase their latest products and services related to turbo systems, generators and rotating machinery. It helps the businessmen to access a wealth on technological advancements on power and turbomachinery industries to drive new business and partnerships with power industry’s leaders. It’s a networking tool that enables exhibitors and delegates to search and arrange meetings either in advance or during the exhibition. Trade professionals and leaders of power industry as well as companies are the ones whom the visitors will network with at IPGTEC 2018.
There will be also several workshops on the latest trends and challenges of this industry in the region. IPGTEC workshop sessions are about Asset management in power industry, Condition monitoring and value added maintenance, Gas turbine life assessment and extension, Root cause analysis in power industry and turbomachines, OEM & non-OEM related insurance liability and risk management in power industry, etc.
Due Iran’s power generation sector is moving towards one of the world’s most modern power industries and it is one of the largest power sectors in the Middle East, with a rapid forecasted annual growth rate, attending such conference will help to grow the industry and undoubtedly these kind of specialized exhibitions are known as the most effective platform for enhanced collaboration.

Energy Department

Iranian Capital Market Endeavors for Transparency

Iranian Capital Market Endeavors for Transparency

Chief of the Central Bank of Iran, who heads the entity regulating the financial market, said “transparency in the capital market is undoubtedly a prior condition for the development of this market and promoting its role in the economy.”
According to CBI website, Valiollah Seif said that transparency begins with the rules and regulations governing the market and then encompasses trade mechanisms and strong oversight.
“Among these, one of the most important elements is transparency in the financial reporting system and financial reporting of securities issuers,” he said.
“Perhaps there is no other characteristic in the stock market that equals financial transparency because in today’s world decision-making is based on forecasting and good forecasting is dependent on healthy and transparent information.”
CBI as the financial sector’s regulator and the Securities and Exchange Organization as the entity regulating the stock exchanges have in the past been at loggerheads over certain issues.
Mandatory upgrades in banks’ financial reporting standards which led to the adoption of the International Financial Reporting Standards (IFRS) by all Iranian lenders in 2016 caused disruption in their stock functions after unhealthier balance sheets emerged in light of the new standards.
Dismayed by the new revelations, Tehran Stock Exchange had to halt the trading of many of its listed banks in the aftermath. For some of the banks, the trading suspension has yet to be lifted.
Seif referred to this reform in banks’ financial statements along with curbing the inflation rate, management of the currency market, organizing the unlicensed credit institutions and enhancing supervision over banks as steps taken by the CBI to promote transparency.
Seif called for drawing on the experience of other countries in stock-related issues in order to put a permanent end to “bad accounting” practices in the country.
The official called for a resolution to the conflict of interest between accounting and auditing by devising three main sectors to handle the issue separately. He referred to the three sectors as one for “devising accounting rules,” the other “regulating the works of auditors” and the last for “auditing the public sector.”
He announced plans for the full adoption of the latest IFRS standards for banks and said the regulator is willing to enhance cooperation with the SEO to promote transparency, which he said would ultimately benefit both the capital and the monetary market.

Finance Department

7th Annual Conference on Electronic Banking and Payment Systems

7th Annual Conference on Electronic Banking and Payment Systems

The largest banking event of the year was held at Tehran’s iconic Milad Tower on Monday. This event centered on financial technology and innovative solutions to succor an economy which is in a dire need to reform. The entity in charge of organizing such major event is Ali Divandari, director of the Monetary and Banking Research Institute. A large number of high-level officials, industry players and local and foreign experts are attending the Seventh Conference on Electronic Banking and Payment Systems.
The ever-increasing importance of fintechs and the boons they bring for consumers are the main points of the meeting. This year’s conference is focused on promoting innovation and optimizing efficiency in financial businesses. In line with this subject, Governor of the Central Bank of Iran Valiollah Seif, called on bank executives and board members to develop a comprehensive understanding of financial technology and block chain innovation.
Communications Minister Mohammad Javad Azari Jahromi was one of the top-tier speakers of the event as well. He warned that the monopoly in payment systems effects market expansion in a detrimental way. He also called the administration’s commitment to combating digital and cyber fraud. He also announced that in a month with collaboration of ministries of economy and industries and central bank, the strategic blueprint of digital economy will be submitted to the parliament. Jahromi promised granting of a bigger role to a digital economy in the government’s plans for the fiscal 2018-19 that begins on March 21.

Digital Banking and Fintechs


Another keynote speaker of the event was the head of CBI’s Innovative Technologies Department. He determined the policies of the monetary regulator in financial innovation and technology. He outlined that the central bank has planned six documents in three phases to provide “regulatory frameworks”. He mentioned that they do not seek just some rigid regulations, but the want to take stance on fintechs and cryptocurrencies. Two of the mentioned documents dealing with payment initiators and facilitators have already been published. The rest of them will be disclosed publicly by the end of next year’s second quarter on Sept. 22. On this subject, the industry players’ feedback will absolutely be considered.
The annual conference had a number of other roundtables which discussed on Europay, Mastercard and Visa technology, open banking and conformity to international standards. In this event, some scientific research articles were also presented. The major subjects were about Banking supervision, confidentiality of information, automation systems, anti-money laundering and combating the financing of terrorism laws and global banking trends.

Finance Department