Determining challenges of government securities in the capital market and providing policy solutions
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Determining challenges of government securities in the capital market and providing policy solutions

Document Type : Original Article

Authors
1 faculty member of imam sadiq university
2 Phd candidate of financial engineering at Imam Sadiq university, Tehran, Iran
3 Phd candidate of financial engineering at Imam Sadiq univesity, Tehran, Iran
4 M.A student of islamic studies and financial management, Imam Sadiq university, Tehran, Iran.
Abstract
The issuance of government securities plays an important role in financing budget deficite. Due to the usury of various types of conventional treasury securities, government sukuk has been designed as an alternative to conventional treasury in the Islamic Republic of Iran. Despite years of experience, financing government through government securities, faced serious challenges, which has called into question the government's continued access to this source of funding. The present article deals with the determining challenges of government financing through the issuance of Islamic securities and provides related solutions with a practical approach.
In this study, using the content analysis of library documents and interviews with experts, supply and demand side, functional and jurisprudential challenges of government securities are analyzed. Then, practical solutions are presented, including; the establishment of primary dealer system, the establishment of a securities issuance committee and the adoption of a relevant permanent law, not to force the banking system to buy securitiess, strengthening the market depth with Utilization of fintechs, creation of information system for debt market, reforming determining coupon rate system, use of innovative contracts and development of market tools.
Keywords

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