Critical Analysis of Securities and Stock Exchange Act (2005) and It's Effects on Iranian Capital Market

This paper is intended to look at the changes made in the legal structure of the Iranian capital market, due to the new legislation on securities and stock exchange enacted in late 2005 in the Islamic Republic of Iran, to replace the law with almost a similar title, but enacted some 40 years ago. Hence, it will take a comparative approach between these two laws to exhibit advantages and innovations of the new Act, as well as its ambiguities and gaps. The new law is a step forward to a professional, transparent, and self regulated capital market. However, some issues are not clearly dealt with in this Act, such as legal structure of the "funds" and "shares basket". Moreover, the stand of foreign investment in this market and the protections that may receive are not clear enough.