SSO Ordered to Cede Excess Shares in Refah Bank

EghtesadOnline: The Majlis on Tuesday obliged the Social Security Organization to sell part of its shares in its affiliated lender, Refah Bank, so that the shares don’t exceed the ceiling set by the Central Bank of Iran.

News ID: ۷۵۰۰۳۲

13 May 2020

As per the decision, the SSO is allowed to own only 33% of the shares in Refah Bank and sell the rest, the parliamentary news website ICANA reported.

MPs gave Refah Bank three years to acquire the qualifications for listing in the bourse to be able to offer the excess shares.

Existing rules stipulate that legal and natural entities are allowed to own maximum 10% of the shares and owning 10-20% of a bank’s shares is subject to approval by the central bank. Rules do not allow ownership of more than 33% of a bank’s shares by one person.

SSO is a public body that provides insurance cover to private sector workers plus voluntary coverage to the self-employed in Iran. The SSO was created as Iran’s social insurer by the Social Security Law ratified in 1975.