Principles and Rules Governing Stock Exchange Transactions

Today, the stock exchange is considered as a center for attracting community funds and also preventing the negative consequences of increasing liquidity among the people on the economy and the welfare of the society, and stock exchange transactions are called as the pulse of the economy of countries. In this regard, the stock market is an organized and official market where transactions such as securities such as company shares and partnership bonds are concluded. Stock exchange transactions are one of the commercial transactions that the traditional provisions of the civil law cannot adequately meet the needs of these transactions, and these transactions are conducted only by brokers, and they perform the transactions as representatives of the parties. These transactions are governed by principles such as the principle of competition, the principle of information transparency, the principle of prohibition of the use of confidential information and the principle of supervision. The characteristics of stock markets and transactions have caused that the general rules of the civil law and other regulations are not enough to regulate stock market transactions. In other words, the major differences between stock market transactions and other transactions require that certain principles and rules govern stock market transactions, so that currently the Civil Law, the Commercial Law, the Securities Market Law of the Islamic Republic of Iran approved in 2005, the Transaction Code In Tehran Stock Exchange Company and its affiliates approved in 2006, the executive instructions on how to conduct transactions in Tehran Stock Exchange approved in 2010 and the instructions for registration, depositing, settlement and settlement approved in 2009 in the stock exchange govern.