Gholamreza Aboutorabi, CEO of the Central Asset Management Company of the Capital Market, said financing in the capital market is done through the Commodity Exchange, the Energy Exchange, the Tehran Stock Exchange and the Iran Fara Bourse Company.

Public, private and cooperative companies, through certain steps, obtain the conditions to enter the capital market and are allowed to issue securities on the initial public offering.

Financing in the capital market is long-term and contract-based, while financing in the banking system is short-term and contract-based. In the capital market priority is given to financing large enterprises, but in the banking system financing priority is given to small and medium-sized enterprises.

In the banking system we face the concentration of risk, while in the capital market this risk is distributed and this issue makes it possible to finance in the capital market with large amounts. For example, in the process of issuing sukuk, the risk is distributed among different elements such as the issuers, guarantors, insurers and so on.

He stated the debt market is one of the most important components of the new monetary and financial markets in each country, saying the necessity of developing the monetary and financial markets is undeniable. In fact, it can be argued that achieving a dynamic, deep and efficient financial system is basically not possible without a healthy debt market with proper function and sufficient depth. In the debt market, types of short-term, medium-term and long-term debt securities are exchanged which can be related to the government, companies, municipalities, etc.

Helping to discover the price of resources illegally based on risk, return and maturity of bonds, directing liquidity in the right direction and preventing the growth of unhealthy markets and contributing to the central bank to implement monetary policies can be considered as advantages of forming a debt market. Making a logical relation to distinguish between risk and return, helping production by financing firms, helping the government to implement fiscal policies, reducing the pressure on the banking network to finance, improving transparency in financial markets and diversifying financial markets are other benefits of the debt market.

Regarding the pillars of issuing debt securities, after reviewing the financing plan by the company and preparing a justification report by the company and the offering consultant, and obtaining the opinion of the auditor and legal inspector, documents and related documents are sent to the Securities and Exchange Organization through the offering consultant.

The documents are reviewed by the Securities and Exchange Organization. If there are deficiencies in the documents, the offering consultant will correct them and the agreement in principle will be issued by the Securities and Exchange Organization. After issuing the agreement in principle, the relevant contracts are prepared and signed by the securities issuing bodies, then they are sent to the Securities and Exchange Organization to obtain the issuance license by the Central Asset Management Company of the Capital Market.

After obtaining a license to issue and sell securities in the stock exchange or Fara Bourse and preparing official documents for the transfer of assets based on issuance, a license is obtained from the Securities and Exchange Organization to withdraw from the account in order to deposit in the issuer / seller account.