Direct and Indirect Holding Systems of Securities

Following the evolution occurred in Capital Markets and dematerialization of securities، Indirect Holding System (IHS) of Securities was performed so that the risk of Paper Crunch، robbery or loss of physical securities decreases. In this research in addition to investigating the disadvantages of Direct Holding System، we concluded that the main characteristic of this system is the direct relationship between issuer and investor. Indirect Holding System is the direct relationship between issuer and intermediaries such as Central Depository Companies and brokers on one hand and the indirect relationship between issuer and investor on the other hand. Iran obeys Direct Holding System.