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 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

Cooperation Agreement between Iran and India

Cooperation Agreement between Iran and India

Iran signed a 2b $ agreement for cooperation in the rail sector. In the presence of Iran’s Minister of Roads and Urban Development, Abbas Akhoundi, and his Indian counterpart Nitin Gadkari, this agreement was signed.
This agreement contains a memorandum of understanding worth $600 million for Iran. Through this MOU, Iran will be capable to purchase locomotives and freight cars from India. Furthermore, India announce its willingness to finance the purchases. This MOU was inked between the deputy for transportation planning and economics and managing director of RITES Ltd Co. RITES Ltd Co. is a government of India enterprise specialized in the field of transport infrastructure.

Project Procedure


As Iran’s Minister of Roads and Urban Development stated, both of the parties are willing to upgrade the MOU to the contract. Through this MOU Iran has this opportunity to be provided with the latest global advancements in rail industry. These new locomotives will help the transportation industry grow.
The important effect of this agreement is accelerating growth in Chabahar Port in line with India’s goal to connect to Central Asia. Ultimately Europe through this Iranian port can connect to the Asia. Iran’s only oceanic port city is Chabahar and consists of two separate ports: Shahid Kalantari and Shahid Beheshti.
The first phase of this project will commence on Dec. 3 2018 by Iran’s President Hassan Rouhani. The Capacity of Shahid Beheshti Port will be tripled to 8.5 million tons.
As the other part of this agreement, there is also the development of Chabahar-Zahedan Railroad which worth $1 billion. India has agreed to build a 500-km railroad from Chabahar to Zahedan. After connecting Chabahar to Zahedan, the railroad will be linked to Zaranj in Afghanistan.
Regarding to this Agreement, Iran is undertaken to provide land in Chabahar Special Economic Zone for Indian companies. It is a very appropriate area to establish petrochemical, fertilizer and other gas-based industries. Through the negotiation between the parties, it was announced that Chabahar-Zahedan Railroad will be completed by March 20th 2018.Finance Department

15 Oil Contracts between Iran and European Companies

15 Oil Contracts between Iran and European Companies

Tehran, Oct 19, IRNA – Iran’s Deputy Oil Minister for International Affairs said Iran was currently negotiating with more than 15 companies from Europe, Russia and Asia exploration, development and production of oil.

Iran has already signed ‘memorandums of understanding’ (investment intentions) for 28 different projects with companies including Total, Eni, Shell, Russian firms Rosneft and Lukoil, and China’s Sinopec and China National Petroleum (CNPC), among others, CNBC quoted Zamani-Nia.

US President Donald Trump has repeatedly criticized and threatened to terminate the Iran Nuclear Deal with G5+1 (China, France, Britain, Russia, the US and Germany); US withdrawal from the Deal, if passed in the Congress, could place under renewed sanctions, affecting Iran’s international business contracts, including oil and gas ones.

Italian Company Signs a Financial Deal with Iran

Italian Company Signs a Financial Deal with Iran

TEHRAN, Oct.13 (FNA)- Italy’s Azimut Company signed a deal with an Iranian company to invest in the country’s development projects.

Azimut Company signed its deal with Iran’s Mofid Entekhab Company to purchase stakes in the financial company.

Azimut, a €48-billion group headquartered in Milan, had acquired 20 percent of Mofid Entekhab, an Iranian asset manager, for an undisclosed sum.

Mofid Entekhab is part of Iran’s privately held Mofid Group, the largest brokerage firm and financial advisory in Iran with $89 million in assets.

ميناء تشابهار كمروج للتجارة الإقليمية

ميناء تشابهار كمروج للتجارة الإقليمية

يودلهي، 29 سبتمبر، إيرنا –
قال الرئيس التنفيذى لجمهورية افغانستان الاسلامية عبد الله عبد الله اليوم ان تنمية ميناء تشابهار الايراني تمهد الطريق لتعزيز العلاقات التجارية بين الدول الاقليمية.
وأشار إلى أن  تشابهار  كمدينة تقع في جنوب شرق ايران تعتبر منطقة استثمارية هامة و تلعب دورا رئيسيا فى الازدهار الاقتصادى للهند وافغانستان ودول اسيا الوسطى. وأشار الى ان كابول تحث على تسريع تنمية تشابهار.
ووقعت كل من ايران وافغانستان والهند اتفاقية لتفعيل الممر بين الشمال والجنوب وتعزيز خطط النقل بين الدول الثلاث .