Resolution of SEO’s Shariah Committee on Project Fund
Sunday, 22 January 2023 12:00 seo Shariah Committee fund 100
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 The Shariah Committee of the Securities and Exchange Organization of Iran (SEO) released its view on Project Fund.

The project fund is one of the types of financial institutions. Its purpose is to collect financial resources for the construction or completion of a certain project. This fund consists of components and in order to achieve the goals related to its activity, after collecting financial resources through the establishment or acquisition of a project company, the fund carries out a specific project. In this situation, the implementation of the project is carried out by the project company and the provision of all or part of the financial resources is done by the fund.

. In order to avoid Gharar, it is necessary to clarify the project specifics, rights and duties of the project company and project delivery details between the investors, the fund manager and the project company at the beginning.
. Trading of project fund investment units is allowed.
. After the construction of the project or selling the project, settlement is made with the owners of the investment units, or by revoking the investment units, the shares of the company are given to them.

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