Iran Launches $400 Million Equity Insurance Scheme to Stabilize Stock Market

Iran Launches $400 Million Equity Insurance Scheme to Stabilize Stock Market
(Saturday, July 12, 2025) 10:55

TEHRAN (NIPNA) – Iran has begun implementing a 200 trillion rial ($400 million) stock market stabilization package, including equity insurance and derivative bond issuance, amid continued efforts to ease volatility and restore investor confidence.

Qader Masoumi Khaneqah, Director of Stock Market Supervision at the Securities and Exchange Organization, announced the activation of the plan on Wednesday, highlighting the importance of clear, data-driven policymaking during market downturns.

“These tools are designed to mitigate irrational declines and curb negative sentiment in sensitive periods,” Masoumi said, referring to the approved mechanisms of equity insurance and put option bond issuance by the Market Stabilization Fund.

The support package, part of the government’s response to recent market instability, will be deployed gradually, he added.

Transparency as Foundation of Trust

Masoumi stressed that transparency in communicating the government's economic measures is crucial for rebuilding public trust and encouraging investor participation. “The more transparent our decisions, the less uncertainty we face in the market,” he noted.

Call for Financial Education Reform

In a broader view of long-term market health, Masoumi underlined the need to introduce basic financial literacy in schools. “While education can't replace immediate interventions in times of crisis, early education can reduce emotional responses over time,” he said.

Market Concerns Addressed

Addressing investor concerns over the operational aspects of the stabilization plan, Masoumi reassured that fund allocations are being executed in a phased and coordinated manner, with full inter-agency collaboration and sensitivity to market dynamics.

 


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