What is Sejam? A Passport for the Iranian Stock Market

Understanding the Iranian Stock Market

The Iranian stock market is a complex and multi-layered financial market composed of four main sectors: the Tehran Stock Exchange, the over-the-counter (OTC) market, the commodities exchange, and the energy exchange.

• The Tehran Stock Exchange is the platform for trading shares of companies and participation bonds. Companies listed on this market are categorized into the first and second markets based on criteria such as transparency and profitability.
• The OTC market is for companies that do not meet the criteria to enter the main stock exchange or wish to enter the market more quickly.
• The commodities exchange is a place for trading raw commodities like metals and agricultural products.
• The energy exchange is dedicated to trading energy carriers like oil and gas.

To participate in the Iranian stock market, individuals must obtain a stock code and register in the Sejam system. Sejam is a comprehensive system for registering customer information, created to enhance transparency and combat money laundering.
Investment in the Iranian stock market can be done either directly or indirectly, but success in this market requires familiarity with fundamental and technical analysis, risk management, and long-term planning. In recent years, the introduction of technology and online trading has transformed the Iranian stock market. However, challenges such as significant price fluctuations and incomplete transparency of information still persist. Consulting expert advisors can help reduce investment risks and are essential for success in this complex market.

Introduction to the Sejam System

The Comprehensive Customer Information Registration System, or Sejam for short, is one of the significant innovations in the infrastructure of Iran's capital market, created with the goal of improving and facilitating investment-related processes. This system operates under the supervision of the Securities and Exchange Organization and was established by the Central Securities Depository and Settlement Company to collect and manage investors' information.

Role and Importance of Sejam in the Stock Market

One of the primary objectives of Sejam is to facilitate access to capital market services and create transparency in transactions. In the past, the process of registering information and verifying identities for investors was conducted in a traditional and fragmented manner. This not only consumed time but also increased the likelihood of errors and misuse. Sejam has effectively resolved these issues by integrating information and creating a centralized database.

Registration and Identity Verification Process

Individual and corporate investors register in the Sejam system by entering their key information, which includes identity, financial, and banking details. After registration, identity verification is carried out either in person or remotely to ensure the accuracy of the information. This process not only enhances security but also improves efficiency by reducing the need for in-person visits.

Transparency and Security in Transactions

One of Sejam's most important achievements is enhancing transparency in the capital market. By accurately registering information and facilitating access to it, the ability to track financial activities and identify various types of misuse has significantly increased. This transparency helps build greater trust among investors and, in the long term, encourages the influx of new capital into the stock market.

Supporting the Development of the Capital Market

With increased transparency and security, Sejam directly contributes to the development and growth of the capital market. This system, by standardizing and integrating information, creates an environment for more efficient risk management and market oversight policies. Moreover, by lowering barriers to entry, it has opened up opportunities for greater participation by both small and large investors.
As a strategic tool, Sejam plays a key role in enhancing the efficiency, security, and transparency of Iran's stock market. Given the growing importance of the capital market in the national economy, Sejam can act as a reliable bridge between investors and financial institutions, contributing to the improvement of market performance and the enhancement of public trust. This system not only meets the current needs of the market but, with its scalable capabilities, is also prepared to address future challenges.

Objectives and Benefits of Sejam

The Comprehensive Customer Information Registration System (Sejam) was established with the goal of improving the efficiency and transparency of Iran's capital market. As one of the key innovations in the country’s financial infrastructure, this system plays an important role in facilitating investment-related processes. In this section, we explore the reasons behind the establishment of Sejam and its benefits for investors.

Reasons for Launching Sejam

One of the main reasons for the creation of Sejam was the need for a centralized and integrated system for registering and managing investors' information. Before the launch of this system, the processes of information registration and identity verification were conducted in a scattered and decentralized manner, leading to errors and security issues. Sejam addressed these challenges by creating a comprehensive database that improves the monitoring and access to information.
Additionally, combating money laundering and the financing of terrorism were other significant objectives behind the launch of Sejam. By consolidating information and increasing transparency in transactions, the system has enhanced the ability to track and identify suspicious activities.

Benefits of Sejam for Investors

1. Ease of Registration and Identity Verification
2. Sejam has simplified the registration and identity verification process for investors. With the option for remote identity verification, the need for physical visits to brokerage offices has been reduced, saving investors time and costs.
3. High Transparency and Security
4. One of the greatest advantages of Sejam is the increased transparency in the capital market transactions. By accurately and centrally registering information, the ability to track and monitor financial activities has improved, leading to greater investor confidence in the market. This transparency helps reduce risks related to fraud and misuse.
5. Dividend Payment and Settlements
6. Sejam has streamlined the process of dividend payments to shareholders. Instead of visiting banks in person, dividends are directly deposited into the account provided by the investor. This not only offers more convenience for investors but also improves the accuracy and speed of settlements.
7. Editing Information and Changing the Supervisory Broker
8. With Sejam, investors can easily edit their information and, if necessary, change their supervisory broker. These features reduce bureaucracy and facilitate interactions with financial institutions.
9. Access to a Variety of Services
10. Sejam enables access to a wide range of financial services. By integrating information, investors can easily access data such as their asset holdings, transaction history, and dividend earnings. This quick and easy access to information enhances investment decision-making.

Sejam, with objectives such as increasing transparency, improving security, and facilitating financial processes, plays an essential role in the development of Iran’s capital market. Its benefits for investors include ease of registration, higher security, and easy access to financial services. By reducing administrative barriers and complexities, this system enhances the investment experience and helps attract more capital. As a gateway to entering the stock market, Sejam allows investors to engage in the market with greater confidence and ease.

Registration in Sejam

The registration process in the Sejam system is an essential step for entering the world of investment in Iran's stock market. This process is designed to collect comprehensive information about investors and enhance transparency in the capital market. Below, we will detail the various stages of this process.

Step 1: Preparing Required Documents and Information

Before starting the registration process, ensure you have all the necessary documents and information ready. These include:

1. National ID card
2. Birth certificate
3. Exact address of residence
4. Postal code
5. Fixed and mobile phone numbers
6. Email address (if available)
7. Employment details (company name, address, phone number)
8. Bank account information (IBAN, bank name)

Make sure all this information is accurate and up-to-date, as any discrepancies may cause delays in the registration process.

Step 2: Visit the Sejam Website

Once your documents are prepared, go to the official Sejam website atSejam.ir. On the homepage, locate and click on the "Register in Sejam" option.

Step 3: Entering Initial Information

In this stage, you need to enter your basic information, which includes:

1. Mobile phone number: This number must be registered in your name and active, as a verification code will be sent to it.
2. National ID number: Enter your 10-digit National ID number carefully.
3. Type of entity: Indicate whether you are registering as an individual or a corporate entity.
4. Legal identity: If registering for yourself, select "Original"; if you are a legal representative for someone else, select "Legal Representative."

After entering this information, a verification code will be sent to your mobile phone. Enter this code in the provided space to proceed to the next step.

Step 4: Completing Information Forms

In this stage, you need to fill out several forms that request personal, contact, employment, and banking details. These forms include:

1. Identity Information: This section requires personal details such as full name, father's name, date and place of birth, national ID number, and birth certificate serial number.
2. Contact Information: Enter your residence address, postal code, fixed phone number, and email address (if available).
3. Employment Information: Provide your job title, employer name, workplace address, and workplace phone number. If you are a student or unemployed, select the corresponding option.
4. Banking Information: Enter your bank account information, including bank name and IBAN. Make sure the bank account is in your name.
5. Other Information: You may be asked questions about your marital status, number of dependents, education level, etc.

Ensure all information is entered accurately, as errors may cause delays or rejection of your registration.

Step 5: Reviewing and Confirming Information

Once you’ve completed all forms, a summary page will display all the information you've entered. This is your chance to review and confirm that everything is correct. If you notice any mistakes, you can return to the previous step and make the necessary corrections

Step 6: Payment of Registration Fee

After confirming your information, you will be directed to the payment page for the registration fee. This fee is generally a small amount and can be paid through online payment gateways. After successful payment, you will be directed to the next step.

Step 7: Receiving the Tracking Code

Once you’ve completed all the steps and paid the fee, a 10-digit tracking code will be given to you. This code is very important, so keep it safe. It will also be sent via SMS to the phone number you registered.

Step 8: Identity Verification

After initial registration, the next step is identity verification. This can be done in two ways: in-person or remotely.

• In-person Verification:
• In this method, you must visit one of the government services offices or brokerage offices listed on the Sejam website. Bring the following documents:
  1. Original National ID card
  2. Original birth certificate
  3. Tracking code from the previous step
• At the office, an official will match your information with the documents and complete the verification.
• Remote Verification:
• With technological advancements, remote identity verification is now available. In this process, you can complete verification through mobile applications or specific websites. Typically, this process involves:
  1. Uploading images of your National ID and birth certificate
  2. Taking a selfie
  3. Recording a short video stating your personal information
  4. Conducting a brief video call with a verification expert (in some cases)
• Once these steps are completed, your information will be reviewed, and if confirmed, your identity verification will be complete.

Step 9: Final Confirmation and Activation

After completing the identity verification step, your information will undergo a final review and confirmation process. This may take several days. Once your registration is fully approved, you will receive a message confirming that your Sejam code has been activated.

Step 10: Accessing Services

After your Sejam code is activated, you can begin using various capital market services, including:

1. Opening accounts in brokerage firms
2. Buying and selling stocks
3. Investing in mutual funds
4. Receiving dividends electronically
5. Viewing your investment portfolio in a unified format

Important Tips in the Sejam Registration Process:

1. Accuracy of Information: All information you provide must be accurate and correct. Any discrepancies may result in your registration being rejected or delayed.
2. Use Personal Information: Ensure that all information you enter is your own. Using another person’s information (even family members) may have legal consequences.
3. Security of Information: Keep your tracking code and other sensitive information secure and avoid sharing them with others.
4. Updating Information: If any of your details change (such as address or phone number), ensure they are updated in the Sejam system.
5. Patience: The registration and final approval process may take several days. Be patient and avoid making repeated calls to support.
6. Official Sources: Use only the official website and apps introduced by the Securities and Exchange Organization for registration to ensure the security of your information.
7. Security Questions: You may be asked security questions in some stages to verify your identity. Answer these carefully.
8. Validity of Sejam Code: Your Sejam code has an expiration date and needs to be renewed periodically. Pay attention to its expiration date.
9. Support Services: If you encounter any issues or have questions, contact Sejam's support services. Typically, contact numbers or forms are available on the Sejam website.
10. Understanding Rules and Regulations: Before engaging in capital market activities, familiarize yourself with the rules and regulations governing the market.

Identity Verification and Its Importance

Identity verification is one of the most fundamental steps in the process of entering financial markets. In the Sejam system, identity verification is conducted to enhance security and transparency in transactions. This process plays a crucial role in preventing fraud and financial misconduct.

Importance of Identity Verification

Identity verification refers to confirming the identity of individuals who intend to engage in the capital market. This step is important for several reasons:

1. Prevention of Illegal Activities
2. By verifying users' identities, the risk of financial misuse and money laundering is minimized.
3. Increased Investor Trust
4. Transparency in user information increases the trust and confidence of investors in the market.
5. Access to Financial Services
6. Completing the identity verification process facilitates access to a variety of financial services for investors.

Role of Identity Verification in Market Security

Identity verification directly impacts the security of the capital market:

• Reducing Fraud Risk
• By confirming the identities of users, the likelihood of unauthorized access to financial accounts is reduced.
• Facilitating Monitoring and Tracking
• Accurate and up-to-date user information enables more effective monitoring of transactions and tracking of suspicious activities.
• Protection of Personal Information
• Advanced identity verification systems protect users' personal data, preventing unauthorized access.

Ultimately, identity verification is an essential and vital process in the capital market that contributes to enhancing security and transparency. With the use of modern and efficient methods, this process can be improved, protecting investors from various threats. This leads to increased public trust and the attraction of more investors to the stock market. The Sejam system plays a significant role in achieving these goals by simplifying and standardizing the identity verification process.

Role of Sejam in Financial Transparency

The Sejam system was established with the goal of increasing financial transparency and reducing money laundering in Iran’s capital market. By collecting and integrating investors' information, this system plays a crucial role in enhancing trust and financial security.

1. Integration of Information
2. Sejam centralizes investors' identity and financial information, enabling more accurate monitoring of market activities. This integration assists regulatory bodies in easily accessing the necessary data.
3. Immediate Access to Information
4. With Sejam, information is available instantly and without intermediaries. This enables quicker and more accurate decision-making in the market and prevents confusion.
5. Transaction Monitoring
6. The ability to track and analyze transactions in detail leads to greater transparency in the market. This feature helps identify suspicious patterns and prevents illegal activities.

Reducing Money Laundering

1. Accurate Identity Verification
2. Through precise identity verification processes, Sejam effectively prevents the entry of unknown individuals or fake identities into the market. This significantly helps reduce the risk of money laundering.
3. Monitoring Suspicious Transactions
4. By providing complete and accurate data, Sejam facilitates the identification of suspicious and abnormal transactions for regulatory bodies. This monitoring aids in preventing illegal money transfers and suspicious activities.
5. Strengthening Anti-Money Laundering Laws
6. The Sejam system, in collaboration with regulatory authorities, contributes to strengthening the enforcement of anti-money laundering laws and preventing financial misconduct.

By increasing transparency and improving security in the capital market, Sejam plays a crucial role in reducing money laundering and strengthening public trust. Through the use of modern technologies and precise processes, this system helps create a secure and transparent environment for investors. Enhanced transparency and reduced financial risks lead to attracting more investors and contributing to the growth of the capital market.

Facilitating Financial Processes through Sejam

The Sejam system was established to improve and streamline financial processes in Iran's capital market. By providing various services, it plays a key role in simplifying financial operations. Below, we examine the benefits of Sejam in dividend payments and changing the supervisory broker.

Dividend Payments

One of the main challenges in the capital market has been the complex and time-consuming process of receiving dividend payments. In the past, shareholders had to visit banks in person to collect their dividend payments. This process was not only time-consuming but also incurred additional costs.
Sejam has significantly simplified this process by creating an integrated and electronic platform. Now, dividends are directly deposited into the bank account provided by the shareholder. This change has increased the speed and accuracy of payments and reduced human errors.

Benefits of Dividend Payments via Sejam

1. Speed and Ease
2. Through Sejam, shareholders receive their dividends quickly and without the need for in-person visits.
3. Accuracy and Security
4. Shareholders' banking information is accurately and securely registered in Sejam, ensuring that payments are made with greater confidence and fewer errors.
5. Cost Savings
6. The reduced need for physical visits and the associated costs are another advantage of using Sejam for dividend payments.

Changing the Supervisory Broker

Changing the supervisory broker is another process that Sejam has made easier. In traditional systems, changing a broker could be complex and time-consuming, requiring multiple coordination steps.
Sejam has integrated information and processes, making it possible to change the supervisory broker online with minimal complexity. Investors can submit their request for a broker change via the system, and the process is completed in the shortest time possible.
By creating electronic and integrated platforms, Sejam plays an important role in facilitating financial processes in the capital market. Through Sejam, dividend payments and changing the supervisory broker are carried out in a simpler, faster, and more secure manner. These features not only improve the efficiency of the market but also increase investor trust. By reducing administrative barriers and complexities, Sejam contributes to enhancing the investment experience and attracting more capital to the stock market.

Challenges and Limitations of the Sejam System

The Sejam system, with all its benefits, also faces challenges and limitations. Below, we examine some of the potential issues and solutions to address them.

Potential Problems

1. Technical and Infrastructure Issues
2. One of the main challenges of Sejam is technical and infrastructure-related problems, which can lead to system slowdowns or disruptions. These issues may occur due to an increase in the number of users or software defects.
3. Data Security
4. Protecting sensitive user data is of utmost importance. Any security flaws could lead to data leaks and financial misuse.
5. Complexity of Processes for Some Users
6. Users may encounter difficulties during the registration and identity verification process, especially if they are not familiar with new technologies.