The chief executive of the Securities and Exchange Organization has asked banking and insurance regulators to provide SEO with the names of people with potential access to inside information.
In letters to the heads of the Iranian Central Bank and the Iranian Central Insurance Company, Mohammad Ali Dehqan-Dehnavi said that some employees of the two regulators have access to important information about the financial performance of listed banks, credit institutions and insurance companies.
Knowing and accessing certain information before publicly traded companies officially publish their financial reports results in illegal and unfair advantages in exchange options.
In recent months, the stock exchange supervisory authority has made increased efforts to improve transparency and obliged listed companies to publish their earnings per share (EPS) at regular intervals.
The lack of a reliable EPS forecast has often been viewed as one of the fundamental flaws of the Iranian stock market. Critics say the lack of a public EPS forecast may result in institutional investors and major shareholders gaining unfair access to key company information ahead of the rest of the market.
Earnings per share are calculated as a company’s earnings divided by the number of shares outstanding in its common stock. The resulting number serves as an indicator of the profitability of a company. EPS is a widely used metric for estimating company value. A higher EPS indicates a higher value.
Accordingly, five groups of listed manufacturing companies must prepare EPS reports, namely the chemical, base metal, mineral, mineral oil and the cement and gypsum industries.