What Is Sejam? A Passport to Iran's Stock Market

In fact, the "Sejam" system functions as a digital identity card, enabling financial institutions to access a wide range of services through a one time registration of investor information. Without registering in Sejam, it is not possible to utilize any capital market services such as opening an account with a brokerage, receiving dividend payments, or investing in mutual funds. This platform represents a major step toward transparency, process simplification, and enhanced security within Iran’s capital market.

Why is Sejam registration essential?

Sejam is not merely an information registration database; it forms the core infrastructure of the capital market’s data ecosystem. Anyone wishing to participate in the stock exchange, over the counter markets, or any affiliated financial markets must first go through the Sejam system. This platform has not only streamlined the market entry process but has also significantly improved oversight and security. The following are two key reasons why Sejam registration is vital:

Legal Requirement for Obtaining a Trading Code

All individuals and legal entities must obtain a trading code to operate in the capital market. Registering in the Sejam system is the first step in this process. Without registration, none of the financial institutions including brokerages, investment funds, or the commodity exchange are authorized to provide services to the individual.
Moreover, this legal requirement helps prevent transactions under fake or anonymous identities. When every person is obligated to submit their identity, banking, and occupational information and complete a verification process, the risk of fraud or misconduct is significantly reduced. This mechanism ensures transparency and integrity within the market.

Enhancing Transparency and Preventing Money Laundering

One of the key objectives of launching Sejam is to prevent financial abuse and money laundering. By consolidating individuals’ identity and financial data in a centralized database, regulatory bodies can more effectively monitor suspicious financial activities. This enables greater visibility into capital inflows, fund destinations, and abnormal transaction patterns.
In addition, Sejam verifies the accuracy of registered information by cross checking with official databases such as the Civil Registry and the banking network. As a result, it serves as a preliminary filter to block individuals with false identities, thereby playing a critical role in fostering market stability and trust.

What are the benefits of Sejam for investors?

Registering in the Sejam system is not only a legal and regulatory necessity it also greatly enhances the investor experience. Sejam has eliminated many of the time consuming, repetitive, and complex procedures of the past, making access to financial services faster, safer, and more convenient. Below are the key advantages it offers to investors:

One Time Registration, Lifetime Access

One of Sejam’s greatest advantages is the one time registration of investor information. In the past, investors were required to fill out separate forms for each financial institution whether a brokerage, investment fund, or asset management company. Now, once information is submitted via Sejam, it is made available to all relevant financial institutions, eliminating the need for repeated registrations or in person visits for every new service.
This feature saves time, reduces bureaucracy, and simplifies the overall user experience. Additionally, when an investor changes their primary brokerage or registers for new financial instruments, Sejam automatically transfers their data to the relevant parties.

Automatic Dividend Payments and Settlements

In the past, receiving cash dividends posed challenges for many shareholders, including incomplete notifications, the need to visit banks in person, or undergoing separate registration processes. With Sejam, this entire process has been fully digitized. Dividends from listed companies are now deposited directly into the bank account registered in the system.
This not only accelerates the payment process but also minimizes errors and potential misconduct in settlements. Shareholders no longer need to submit receipts or written requests dividends are automatically and regularly credited to their accounts.

Online Information Updates Without In Person Visits

Previously, updating personal details such as phone number, address, or bank account required in person visits to brokerages or other financial entities. Today, these updates can be made through Sejam’s user portal at any time. The updated information is then automatically synchronized with all relevant financial institutions.
This feature is especially useful for active investors or those who frequently engage in capital market activities. Moreover, the reduction of in person interactions and paperwork represents a significant step toward e-government and the digitalization of financial services.

Who Needs to Register in Sejam?

The Sejam system is designed for all individuals and entities involved in Iran’s capital market whether as investors, financial institutions, or fund managers. Registration in Sejam is a mandatory prerequisite for accessing a wide range of financial services, including buying and selling stocks, investing in mutual funds, receiving dividends, and even opening an account with a brokerage. Below are the groups that are required to register in Sejam:

All Capital Market Participants

Sejam is not limited to individual Iranian investors. Anyone planning to engage directly or indirectly in Iran’s capital market must register and complete identity verification in the system:

• Iranian Natural Persons: Any individual seeking to obtain a trading code and invest in the stock market for the first time.
• Foreign Natural Persons: Non Iranian investors intending to participate in Iran’s capital market must also register their identity and banking information in Sejam.
• Legal Entities: Companies, investment funds, financial institutions, portfolio managers, and other legal entities are required to submit their corporate information and registration documents to Sejam.

For these groups, Sejam registration is not only a legal obligation but also the foundation for accessing all financial services in the country.

Who Needs to Register in Sejam Immediately?

Certain individuals must register in Sejam without delay, as they cannot access even the most basic financial services without it. These include:

• Applicants for a trading code: Without registering in Sejam, obtaining a trading code and accessing the trading system is not possible.
• Justice Shares holders: To manage Justice Shares, view assets, sell, or receive dividends, registration in Sejam is mandatory.
• Long time shareholders: Individuals who have been active in the stock market for years but have not yet registered in Sejam must update their information in this system.
• Those who wish to change their brokerage, receive cash dividends, or register in investment funds.

Registration and Identity Verification Process in Sejam

Registration in the Sejam system follows a defined and relatively simple process that is carried out in three main stages. This process is designed to collect, verify, and finalize user information, creating a transparent platform for financial activity. The stages are explained below:

Stage 1 – Submitting Initial Information on the Website

The applicant must first visit the official Sejam website at
www.sejam.ir and complete the registration form. At this stage, the following information is collected from the user:

• National ID number (for Iranian individuals) or registration number (for legal entities)
• A valid mobile phone number registered in the applicant's name
• Identification details including first name, father's name, date of birth, place of issue, birth certificate number, etc.
• Contact information and residential address (full address and postal code)
• Banking information such as the IBAN (Sheba number) and the name of the respective bank

Once the information is submitted, the system generates a 10 digit tracking code, which is essential for the next steps. This code is also sent to the user via SMS.

Stage 2 – In Person or Remote Identity Verification

In the next step, the individual must go through identity verification. This step is meant to confirm the accuracy of the submitted data and can be completed in two ways:

In person verification

The applicant visits one of the designated government service offices or selected brokerage branches and presents the required documents, such as their national ID card and tracking code. The responsible official verifies the submitted information against the documents and completes the verification process.

Remote verification

Using authorized mobile applications, the applicant uploads images of their documents, takes a selfie, and records a short video stating their personal information. In some cases, a video call with a specialist may be required. This method is significantly faster and easier for those whose data matches records in the national civil registry or banking system.

Stage 3 – Review and Approval of Information

After identity verification, the Sejam system cross checks the applicant’s information with governmental databases such as the Civil Registration Organization, banking system, Company Registration Office, etc.
If all information is confirmed, an SMS notification is sent to the user confirming the successful completion of registration. If there are any discrepancies, the system specifies what needs to be corrected, and the applicant must edit and resubmit the relevant information.

In Person or Remote Registration: Which Is Better?

In recent years, electronic identity verification has become available for users, and many investors are now uncertain whether to choose the in person or remote method. Below is a comparison of the advantages and limitations of each approach:

In Person Identity Verification

The in person method is generally recommended for individuals who are less comfortable with modern technologies or prefer to complete the registration process under direct supervision. Key features of this method include:

• Real time support and correction of information by a staff member
• Suitable for individuals with incomplete or inconsistent data
• Requires physical presence at designated offices and payment of service fees

This method can be time consuming and may pose accessibility challenges in smaller cities with limited service centers.

Remote Identity Verification

Digital identity verification is one of the major achievements of the capital market's digital transformation. In this method, the entire process is completed using a mobile phone or personal computer. Its advantages include:

• Fast completion without the need to leave home
• Saving time and transportation costs
• Ideal for individuals whose information matches official databases

However, this method requires internet access, a good quality camera, and proper uploading of documents.

Security and Essential Measures After Registration

Registering in the Sejam system is only the starting point for entering the capital market. After successfully completing the registration and identity verification process, observing a few critical security precautions can help prevent potential issues and misuse. This section outlines the most important actions every investor should take after registration to safeguard their personal and financial information.

Store the Tracking Code in a Secure Location

After completing the first step of registration, a 10 digit tracking code is issued to the user. This code is essential for tracking registration status, visiting identity verification centers, and even accessing some subsequent services. It is recommended to store this code in a secure place, preferably offline and away from internet connected devices. Sharing this code with others may result in identity theft or misuse.

Ensure Consistency Between Documents and Official Records

The information entered into the system must exactly match the data in official documents such as the national ID card, birth certificate, and banking information. Any discrepancies may result in rejection of the identity verification process or future legal complications. If there are any changes in identity or banking details (such as renewal of the national ID card or a change in bank account number), the user is obligated to update the information in the system promptly.

Create Backups and Safely Store the Portal Password

Once registration is finalized, the user can access their personal Sejam portal, which requires a dedicated password. Keeping this password secure is crucial. It is advisable to store it in a password management application and change it periodically. Additionally, creating backups of important data and Sejam messages in PDF or image format can be helpful in case of emergencies.

Be Alert to Infrastructure Issues and Suspicious Messages

Given the sensitivity of the information stored in Sejam, malicious individuals may attempt to exploit users through fake SMS messages or deceptive calls. Be aware that Sejam only communicates through its official phone numbers and domains. Avoid clicking on unknown links or sharing personal data with unofficial contacts. If you receive a suspicious message, do not respond; instead, verify the matter through Sejam’s official website.
By observing these simple yet important precautions, one can ensure the security of the information registered in Sejam and benefit from capital market services with greater peace of mind.