Volume 19, Issue 4 (12-2024)
J. Mon. Ec. 2024, 19(4): 431-451 |
Back to browse issues page
Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
RezaFar A H, Naqshi M, Bagheri M. Central Bank Competence Assessment in the Field of Issuing Securities Based on the Central Bank Act. J. Mon. Ec. 2024; 19 (4) : 1
URL: http://jme.mbri.ac.ir/article-1-726-en.html
URL: http://jme.mbri.ac.ir/article-1-726-en.html
Abstract: (902 Views)
The history of the Central Bank in issuing securities, especially partnership bonds, began in the 1990s with the approval of development program laws. According to Article 4 of the Law on the Procedure for Issuing Cooperative Bonds, the Central Bank was in a way the custodian of the license for issuing cooperative bonds, which was subsequently transferred to the Securities and Exchange Organization with the approval of the Securities Market Law. However, Article 27 of this law exempted the Central Bank's cooperative bonds from registration with the Stock Exchange Organization. In addition, Article 91 of the Third Development Plan Law issued the first legal license for the issuance of cooperative bonds by the Central Bank for the purpose of liquidity management. The main issue of the present study is the ambiguity in the current authority of the Central Bank in issuing securities after the approval of the new Central Bank Act; Part Three, Clause "B" of Article 4 of this law granted the Central Bank the authority to "design and issue various types of financial securities," but the conflict of this authority with the requirements of the Securities Market Law has created legal challenges. Based on research conducted with library resources and using a descriptive-analytical method, the findings show that the Central Bank is exempt from registration with the Stock Exchange Organization only when issuing participation bonds, and the issuance of other securities requires compliance with the processes stipulated in the Securities Market Law.
Article number: 1
Keywords: Issuance of bonds, securities, partnership bonds, central bank, stock exchange organization, legal jurisdiction
Type of Study: Original Research - Theoric |
Subject:
Economics
Received: 5 Feb 2025 | Accepted: 6 Aug 2025 | Published: 6 Aug 2025
Received: 5 Feb 2025 | Accepted: 6 Aug 2025 | Published: 6 Aug 2025
References
1. Ahmadi, S. (2024). The Impact of Issuing Special Central Bank Deposit Certificates on the Stock Market. Monthly Journal of Economic Security, 12(1), 27-34. [In Persian]
2. Elsan, M., & Negin-Taji, Z. (2022). Legal and Economic Analysis of the Independence of the Central Bank of the Islamic Republic of Iran. Encyclopedia of Economic Law, 29(21), 50-84.
3. Elsan, M. (2023). Banking Law (10th ed.). Tehran: Organization for Researching and Composing University Humanities Books (SAMT).
4. Benston, G. J., & Irvine, P., Rosenfeld, J., & Sinkey, J. F. (2003). Bank Capital Structure, Regulatory Capital, and Securities Innovations. Journal of Money, Credit, and Banking, 35(3), 301-322. [DOI:10.1353/mcb.2003.0015]
5. Boonstra, W., & Geffen, B.V. (2022). Should the ECB consider issuing its own securities? Suerf Policy Note, 280, 1-17.
6. Heydari, H., & Heydari, N. (2016). Pathology of the Banking System; Evaluation of Monetary and Credit Policy Performance in Iran. Economic Studies Office of the Islamic Parliament of Iran, 84441. [In Persian]
7. Kiss, G. D., & Mészáros, M. (2020). Gravity among central bank balance sheets: Monetary policy spill-over on FX volatility. Econometric Research in Finance, 5(1), 33-57. [DOI:10.2478/erfin-2020-0003]
8. Miller, M., & Hadley, S. (2016). Cash management in cash constrained environments a public financial management introductory guide. Overseas Development Institute, 1-24.
9. Meisami, H., & Nadri, K. (2015). Open Market Operations of Government and Central Bank Securities. Islamic Financial Research, 5(1), 119-154. [In Persian]
10. Mirzaei Monfared, G. (2012). Criminal law of securities market. Mizan Legal Foundation.[In Persian]
11. Mohammadi-Aghdam, S., & Ghavam, M. (2016). Investigating the causal relationship between money and capital markets to control financial market volatility within the framework of resistance economy. Quarterly Journal of Islamic Financial Research, 5(2), 75-110. .[In Persian]
12. Monjazeb, M., & Amiri, H. (2022). Impact of Central Bank Interventions on Exchange Rate Volatility Using Quantile Method in Iran. Quarterly Journal of Monetary-Banking Research, 15(52), 333-352. .[In Persian]
13. Naeini, M., & Khoei, A. (n.d.). Ajwad Al-Taqrirat, Vol. 2. Qom: Mostafavi Bookstore. .[In Persian]
14. Nahidi Amir Khiz, M., Zarrieh Mohammad Ali, F., Paytakhti Askoui, A., & Ranjpour, R. (2023). Analysis of the impact of Islamic financing instruments on monetary policies in Iran based on Taylor Rule: A Quantile Approach. Quarterly Journal of Islamic Economics and Banking, 12(42), 273-301. .[In Persian]
15. Nazarpoor, M., & Gol-Mohammadi, T. (2018). Pathology of Issuance of Central Bank participation Bonds in Iran. Quarterly Journal of Islamic Economics and Banking, 7(22), 131-153. .[In Persian]
16. Nyawata, O. (2013). Treasury bills and/or Central bank bills for absorbing surplus liquidity: The main considerations. Journal of International Commerce, Economics and Policy, 4(2), 1-38. [DOI:10.1142/S1793993313500117]
17. Rezania, M. (2018). Foundations and Legal Analysis of the Law on Issuance of participation Bonds (Master's Thesis in Public Law). Islamic Azad University, Bandar Abbas, Iran. .[In Persian]
18. Rule, G. (2011). Issuing central bank securities. Handbooks, Centre for Central Banking Studies, Bank of England, N 30.
19. Sadeghi, M., & Bagheri, M. (2017). Legal issues and consequences of shadow banking. Scientific Quarterly of Judicial Legal Views, 26(96), 1-22. .[In Persian]
20. Saleh-Ahmadi, S. (2019). Securities market law in the current order. Ketab Ava. .[In Persian]
21. Soltani, M. (2017). Capital market law. Organization for Researching and Composing University Humanities Books (SAMT). .[In Persian]
22. Shooshinasab, N. (2015). Legal Nature of Securities. Mizan Legal Foundation. .[In Persian]
23. Joyce, M., & Miles, D., Scott, A., & Vayanos, D. (2012). Quantitative easing and unconventional monetary policy - an introduction. The Economic Journal, 122(564), 271-288. [DOI:10.1111/j.1468-0297.2012.02551.x]
24. Warin, T. (2005). Monetary policy: From theory to practices. Middlebury College Economics Discussion Parer, No. 05-08, 1-22.
| Rights and permissions | |
 |
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. |
