Document Type : Original Article
Authors
Department of Law, Faculty of Social Sciences, Imam Khomeini International University, Qazvin, Iran.
Abstract
Collateralization of securities in Iran’s banking system contributes to facilitating financing, managing credit risk and enhancing liquidity. This study aims to analyze the legal foundations, implementation challenges and reform capacities of collateralizing securities within the framework of newly enacted laws, banking regulations and capital market rules. The research adopts a descriptive-analytical method and the data and materials have been collected through library-based studies. The findings indicate that due to legal constraints, the pledge contract lacks sufficient capacity for the collateralization of securities. In contrast, collateral peace agreements and atypical (non-nominate) contracts are examined as more efficient alternatives. Moreover, the enactment of the Law on Financing of Production and Infrastructure has led to significant progress in the collateral framework—most notably, the expansion of eligible assets for collateral and the formal acceptance of securities as collateral instruments. Nonetheless, several challenges persist, including the lack of a transparent market for unlisted securities, legal ambiguities concerning the rights of the collateral provider and taker, and fluctuations in the value of securities. The proposed solutions include establishing trading platforms for unlisted securities, developing clear regulations on the rights of the parties involved and designing collateral agreements that mitigate value fluctuation risks. The findings of this study can effectively contribute to the reform of laws, banking regulations and policies, as well as the optimization of operational practices related to the collateralization of securities.
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