Iran's securities regulator issues a single directive on capital increases from asset revaluation

Zeinab Fallah, head of the centre for legal advisers and regulation drafting of Iran's capital market, said in an interview published by Bourse News on Saturday, 1 August 2026 (10 Mordad 1405), that the directive on capital increases from asset revaluation at public joint stock companies registered with the organisation was approved by the board of the Securities and Exchange Organisation on 22 June 2026 (1 Tir 1405) and has now been issued.

She said the measure rests on Article 14 of the law on maximum use of the country's production and service capacity and support for Iranian goods, which permits companies to raise capital from asset revaluation in order to repair their financial structure. Fallah said that under the previous process, uncertainty in accurately estimating the value of assets transferred to capital had put shareholder rights at risk, making a review of the earlier resolutions necessary. After initial approval, market participants' comments were gathered in a public consultation and reflected in the draft.

According to her remarks, the central requirement of the new rules is that asset valuation must rest on the opinion of an official court appointed expert, and standards have also been set for valuing shares transferred into company capital. Fallah added that scattered earlier resolutions have been consolidated into a single directive, with provisions no longer fitting current conditions repealed, so that issuers face one regulatory text. The directive is available through the capital market laws and regulations database.