A Regulatory Framework for Iran's Capital Market

Abstract

Iran's capital market, as one of the key pillars of the national financial system, plays a crucial role in financing and attracting both small-scale and large-scale investments. However, the regulatory structure of this market faces challenges such as the lack of independence of regulatory bodies, insufficient transparency, and weak coordination among related entities. This study aims to identify the strengths and weaknesses of the current regulatory framework and proposes a comprehensive and effective model for regulating Iran's capital market. This descriptive-analytical research employs mixed methods (qualitative and quantitative) and utilizes data collected from two main sources: secondary data through library studies, documents, and reports; and primary data gathered via semi-structured interviews and specialized questionnaires with financial experts. Data analysis techniques include fuzzy Delphi methods, structural equation modeling, and fuzzy multi-criteria analysis (TOPSIS), with tools such as SPSS, AMOS, Mplus, and SmartPLS employed for processing.The analysis reveals that the current regulatory framework in Iran suffers from issues like government dependency, conflicts of interest, and transparency deficits. Additionally, a review of the experiences of successful countries like Germany and the United Kingdom suggests that a combination of institutional and integrated oversight could be suitable for Iran’s capital market.The proposed model involves establishing an independent regulatory body, enhancing informational transparency, adopting modern technologies, and promoting international coordination. Reforming the regulatory framework for Iran's capital market through the adoption of the proposed model could lead to increased transparency, reduced systemic risk, and improved investor confidence. This study not only identifies challenges and provides scientific solutions but also offers a roadmap for improving capital market regulation while emphasizing the need for compliance with global standards.