Iran Stock Exchange Explained: History, Structure, and Market Dynamics

🏛️ Origins & Growth

• The TSE launched in 1967, initially trading only corporate and government bonds; equities came shortly after.

• By the 1970s and early 2000s, fueled by privatized giants and strong investor appetite, the TSE ranked among the best‑performing frontier markets globally.

📈 Scale & Participation

• Currently, around 380–660 companies are listed—data varies—spanning 37+ industries: petrochemicals, mining, banking, telecoms, automotive, metals, agriculture, insurance and more.

• As of September 2023, the market’s total cap was about USD 1.74 trillion, up from historical lows and peaking near USD 1.99 trillion earlier in 2023.

• Alternative sources cite USD 120 billion as market size in January 2025 (likely excluding informal or parallel platforms).

🏦 Structure & Oversight

• Regulated by the Securities & Exchange Organization (SEO) and the Securities & Exchange Council, TSE operates with self‑regulation under strict authority .

• Settlement, clearing, and e‑KYC electronic systems are handled by the Central Securities Depository of Iran (CSDI). This includes modern portals like KARA, DDN, DIMA, and collateral system SETAREH .

📡 Modernization & Digital Reach

• In 2007, TSE launched a digital trading platform powered by Atos Euronext for greater transparency .

• CSDI’s CIGS system alone has over 40 million registered investors, showing massive local retail participation .

• Digital portals support remote voting, e‑collateral, and more.

⚖️ Market Dynamics & Risks

• The TSE is highly sensitive to oil price fluctuations and broader geopolitical tensions. Studies show strong correlation between oil dips and index declines .

• Recent conflicts (e.g., mid‑2025 tensions with Israel) triggered sharp sell‑offs—indexes fell ~1 million points, with massive outflows as investors sought safer assets .

• Fixed‑income outflows and a drop in liquidity are early warning signals during period of regional uncertainty .

🌍 Regional Role & International Ties

• The TSE is a founding member of the Federation of Euro‑Asian Stock Exchanges.

• CSDI holds multiple MoUs with global depositories (Japan, Russia, Greece, Taiwan, India); it increasingly aligns with CPMI‑IOSCO best practices.

✅ Investing on the TSE

1. Register via e‑KYC on CIGS/DDN.

2. Choose a licensed broker or online portal.

3. Trade equities, IPOs, ETFs, bonds, and Sukuk (Islamic financial certificates similar to bonds but structured to comply with Islamic law (Sharia), which prohibits interest payments. They represent ownership in an underlying asset, allowing investors to receive returns from the asset's performance rather than from interest).

4. Be ready for volatility—both oil‑driven and geopolitical swings.

📊 Quick Snapshot

✍️ Final Thoughts