Free Practice Questions for Iran Capital Market Dealing Exam

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Sample Iran Capital Market Dealing Exam Practice Questions

Try these sample questions to review concepts for the Iran Capital Market Dealing Exam exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Article 3 of the Securities Market Act of the Islamic Republic of Iran (enacted 1384), who serves as the Chairman of the High Council of Securities and Exchange (*Showrā-ye Āli-ye Boors va Owraq-e Bahādar*)?

A.The Minister of Economic Affairs and Finance (*Vazir-e Omoor-e Eqtesadi va Darayi*)

B.The Governor of the Central Bank of Iran

C.The Head of the Tehran Stock Exchange

D.The Chief Justice of the Supreme Court

Explanation: Article 3 places the High Council at the apex of the capital market and gives the chair to the Minister of Economic Affairs and Finance. That reflects the Council's role: it sets macro policy for the market and appoints the Organization's board, so it is chaired by the minister politically answerable for economic policy rather than by a market institution.

2Under Article 6 of the Securities Market Act of 1384, how are the members of the Board of Directors of the Securities and Exchange Organization (SEO / *Sāzmān-e Boors va Owrāq-e Bahādar*) appointed?

A.They are elected directly by shareholders of listed brokerage firms in an annual election

B.They are nominated by the Minister of Economic Affairs and Finance, approved by the High Council of Securities, and appointed by Council decree for a 5-year term

C.They are appointed by the Governor of the Central Bank for an indefinite duration

D.They are selected through a lottery of licensed commodity traders

Explanation: Under Article 6, the Board of Directors of the SEO consists of five members who are experts in finance, law, or economics. They are nominated by the Minister of Economic Affairs and Finance, approved by the High Council of Securities and Exchange, and appointed for a term of five years (renewable once).

3Under the Securities Market Act of 1384, which of the following is explicitly defined as a Self-Regulatory Organization (SRO / *Tashakkol-e Khod-entezām*)?

A.The Iranian National Tax Administration (INTA)

B.The Central Depository of Iran (CSDIR / *Sherkat-e Sepordeh-gozāri-ye Markazi va Tasviyeh-ye Vojuh*)

C.The Ministry of Petroleum

D.The State Audit Court (*Divān-e Mohāsebāt-e Keshvar*)

Explanation: Under Article 1, Paragraph 9 of the Securities Market Act, SROs are entities that regulate the professional relationships among their members under SEO supervision. They explicitly include stock exchanges, over-the-counter markets (Fara Bourse), the Central Depository (CSDIR/Semat), the Iranian Broker Association (SEBA), and the Association of Institutional Investors.

4Under the Law on the Development of New Financial Instruments and Institutions (enacted 1388), what is the tax status of capital gains realized from trading listed shares and rights on the Iranian capital market?

A.Taxed at the standard corporate tax rate of 25%

B.Subject to a progressive income tax rate ranging from 10% to 35%

C.Completely exempt from income tax, with only a flat transaction turnover withholding tax levied on the gross transfer value

D.Subject to a 50% speculative transaction surcharge

Explanation: Under Article 143-bis of the Direct Taxes Act (added by the 1388 Law on Development of New Financial Instruments), capital gains on the transfer of shares and subscription rights in listed exchanges are completely exempt from income tax. Instead, a flat half-percent (0.5%) turnover transfer tax is withheld from the sales proceeds at source.

5What is the legal form required under the Commercial Code and SEO regulations for establishing a brokerage firm (*Sherkat-e Kārgozāri*) in Iran?

A.Joint Stock Company (*Sherkat-e Sahami-ye Khas* or *Sahami-ye Am*) or non-governmental cooperative

B.General Partnership (*Sherkat-e Tazamoni*)

C.Sole proprietorship owned by an individual broker

D.Limited Partnership (*Sherkat-e Mokhtalet-e Gheyr-e Sahami*)

Explanation: A brokerage must be incorporated as a private or public joint stock company, or as a non-governmental cooperative, with registered shares and capital meeting the minimum the SEO prescribes. The joint stock form is required because it separates ownership from management, subjects the firm to a statutory inspector and audited accounts, and makes the shareholder register visible to the regulator for fit-and-proper purposes.

6Under SEO trading regulations on the Tehran Stock Exchange (TSE), what is 'Base Volume' (*Hajm-e Mabnā*)?

A.The minimum number of shares a broker must hold in inventory to maintain market maker status

B.The minimum number of shares of a listed company that must be traded during a trading day for the stock's closing price (*qeymat-e pāyāni*) to fluctuate to the full allowable daily price limit

C.The total maximum trading volume permitted for all investors during a single morning session

D.The minimum block size required to execute an off-market negotiated trade

Explanation: In the Iranian stock market, Base Volume (*Hajm-e Mabnā*) is a unique volatility control mechanism. It represents the minimum number of shares of a specific security that must trade in a day so that the weighted average price of trades becomes the official closing price (*qeymat-e pāyāni*) capable of reaching the maximum daily percentage price limit (*dāmeneh-ye navasān*). If traded volume is less than base volume, the closing price movement is curtailed proportionately.

7A stock on the Tehran Stock Exchange has an opening base price of 10,000 IRR, a daily price limit of ±5%, and a Base Volume of 1,000,000 shares. During the trading day, exactly 500,000 shares are traded, all at the upper price limit of 10,500 IRR. What will be the official closing price (*qeymat-e pāyāni*) of the stock for calculating the next day's price limits?

A.10,250 IRR

B.10,500 IRR

C.10,000 IRR

D.10,100 IRR

Explanation: Because actual traded volume (500,000 shares) was only 50% of the Base Volume (1,000,000 shares), the price change is scaled down by the ratio (Actual Volume / Base Volume). The maximum change was +500 IRR (from 10,000 to 10,500). Scaled change = 500 IRR * (500,000 / 1,000,000) = +250 IRR. Therefore, the closing price is 10,000 + 250 = 10,250 IRR.

8Under SEO regulations, what occurs during the pre-opening session (*Pish-goshāyesh*) on the Tehran Stock Exchange?

A.Continuous trading occurs and all matching orders are instantly executed

B.Market participants can enter, modify, and cancel buy and sell orders, but no trades are executed; an indicative theoretical opening price is computed continuously

C.Only institutional investors and government banks are permitted to trade

D.Trading is restricted to foreign investors holding special currency permits

Explanation: During the pre-opening session (*Pish-goshāyesh*), orders are entered into the central order book (PAM) to form supply and demand queues, but no trades are matched or executed. The system calculates an indicative opening price (*qeymat-e nazari-e goshayesh*). At the opening bell, orders match in a single call auction.

9Under the Margin Trading Regulations (*Dastoorol'amal-e Mo'amelat-e E'tebari-ye Owraq-e Bahadar*), what is the definition of a 'Margin Call' (*Ekhtāriyeh-ye Afzāyesh-e Vajh-e Tadmin*)?

A.A congratulatory letter sent to a client when their portfolio doubles in value

B.A formal notice sent by the brokerage firm requiring the credit client to deposit additional cash collateral or pledge acceptable securities because the portfolio collateral ratio has fallen below the required maintenance margin

C.A request by the Central Bank to convert margin accounts into commercial letters of credit

D.An order from the SEO halting trading in all bank stocks

Explanation: A Margin Call (*Ekhtāriyeh-ye Afzāyesh-e Vajh-e Tadmin*) is an official demand by the broker to a client who bought securities on margin when stock price declines cause the ratio of client equity/collateral to fall below the mandatory maintenance margin threshold. The client must deposit additional collateral or face forced liquidation of holdings.

10A client opens a credit trading account with a brokerage firm, depositing 600,000,000 IRR in cash equity. The broker extends a credit facility allowing the client to purchase shares with a total market value of 1,000,000,000 IRR (loan amount = 400,000,000 IRR). The maintenance margin is 30% of total portfolio value. What is the minimum portfolio market value before the broker must issue a margin call?

A.571,428,571 IRR

B.400,000,000 IRR

C.700,000,000 IRR

D.300,000,000 IRR

Explanation: Client Equity = Portfolio Market Value (V) - Loan Amount (400,000,000). The maintenance margin condition requires: Client Equity / V >= 30% => (V - 400,000,000) / V = 0.30 => V - 400,000,000 = 0.30 * V => 0.70 * V = 400,000,000 => V = 400,000,000 / 0.70 = 571,428,571 IRR. If the portfolio value drops below 571,428,571 IRR, the broker must issue a margin call.

About the Iran Capital Market Dealing Exam Exam

The Iran Capital Market Dealing Professional Certification Examination (آزمون گواهینامه حرفه‌ای معامله‌گری بازار سرمایه) is the statutory professional qualification administered by the Securities and Exchange Organization of Iran (SEO / سازمان بورس و اوراق بهادار) through the Capital Market Professional Certificates Administration (icmc.seo.ir) and Semedco (test.semedco.ir). Passing this examination is the mandatory prerequisite for obtaining a Trader Card (*Kārt-e Mo'āmelegari*) and operating trading terminals at licensed brokerage firms across the Tehran Stock Exchange (TSE), Farabourse, Iran Mercantile Exchange (IME), and Iran Energy Exchange (IRENEX). The examination rigorously evaluates a candidate's mastery of capital market legal frameworks, trading mechanics, order handling, margin financing regulations, market abuse prohibitions, corporate disclosure obligations, and investor dispute resolution. Following passage of the examination, brokers complete practical market-specific training tracks (covering securities, commodities, energy, and derivatives) organized by the Iranian Broker Association (SEBA). This question bank is an independent English-language multiple-choice study adaptation developed by OpenExamPrep. It offers 100 rigorous practice questions addressing the core securities statutes, trading rules, margin mechanisms, and regulatory guidelines tested on the official examination. It is not an official translation, reproduction, or endorsement by the Securities and Exchange Organization of Iran, Semedco, or SEBA.

Exam sponsor: Securities and Exchange Organization of Iran (SEO) - Capital Market Professional Certificates Administration. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

One subject only, 'Capital Market Dealing Regulations' (*Moqarrarat-e Mo'amelegari-ye Bazar-e Sarmayeh*), examined in 60 multiple-choice questions. The published syllabus is an enumerated list of statutes and SEO instructions rather than weighted domains, and no official percentage weighting per topic is published. It covers the Securities Market Act of 1384 and its executive regulation, the 1347 Amendment to the Commercial Code, the Law on Development of New Financial Instruments and Institutions of 1388, SEO supervision of public joint stock company formation and capital increases, the disclosure instruction for registered issuers, Broker Association membership and disciplinary instructions, the customer identification and record-keeping instructions, foreign investment regulations, and the trading, pledging, clearing and settlement instructions for the Tehran Stock Exchange, Farabourse, the Iran Mercantile Exchange and the Iran Energy Exchange, including futures, options and block trading.

Time Limit

75 minutes

Passing Score

Published threshold of 50 out of 100 (raised from the 40 out of 100 set by SEO board resolution 331 of 1393); confirm the current figure with the SEO before sitting

Exam / Certification Fees

Set in Iranian rials (IRR) and published in the official registration portal at the time of registration; no standing fee is published

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

22%

Securities Market Law & Governance (قانون بازار اوراق بهادار و نهادها)

Securities Market Act of 1384, High Council of Securities and Exchange, powers and duties of the SEO Board of Directors, Self-Regulatory Organizations (TSE, Farabourse, IME, IRENEX, CSDIR, Broker Association), financial institutions framework, and Law on Development of New Financial Instruments (1388).

33%

Brokerage Operations & Trading Rules (مقررات و ضوابط کارگزاری و معاملات)

Broker licensing and capital adequacy, dealer card and trader qualifications, PAM order book execution mechanics, call auctions and pre-opening sessions, base volume (Hajm-e Mabna), daily price limits, margin trading and collateral maintenance, and segregation of client trust funds.

19%

Market Abuse, Infractions & Dispute Resolution (تخلفات، جرایم و حل اختلاف)

Insider trading definitions and penalties under Article 46, market manipulation and wash trading, front-running and churning prohibitions, disciplinary procedures of the Broker Association, conciliation, and mandatory Article 36 SEO Arbitration Board proceedings.

26%

Financial Instruments, Disclosure & Company Law (ابزارها، افشا و قانون تجارت)

Equities and pre-emptive subscription rights, Islamic debt securities (Sukuk Ijarah, Murabahah, Manfa'at, Standard Parallel Salaf, Islamic Treasury Bills - Akhza), derivatives (stock options and futures), Codal information disclosure instructions (Category A and B events), and Commercial Code capital structure rules.

Preparing for the Iran Capital Market Dealing Exam Exam

What You Need to Know

Passing score: Published threshold of 50 out of 100 (raised from the 40 out of 100 set by SEO board resolution 331 of 1393); confirm the current figure with the SEO before sitting
Assessment: One subject only, 'Capital Market Dealing Regulations' (*Moqarrarat-e Mo'amelegari-ye Bazar-e Sarmayeh*), examined in 60 multiple-choice questions. The published syllabus is an enumerated list of statutes and SEO instructions rather than weighted domains, and no official percentage weighting per topic is published. It covers the Securities Market Act of 1384 and its executive regulation, the 1347 Amendment to the Commercial Code, the Law on Development of New Financial Instruments and Institutions of 1388, SEO supervision of public joint stock company formation and capital increases, the disclosure instruction for registered issuers, Broker Association membership and disciplinary instructions, the customer identification and record-keeping instructions, foreign investment regulations, and the trading, pledging, clearing and settlement instructions for the Tehran Stock Exchange, Farabourse, the Iran Mercantile Exchange and the Iran Energy Exchange, including futures, options and block trading.
Time limit: 75 minutes
Exam / certification fees: Set in Iranian rials (IRR) and published in the official registration portal at the time of registration; no standing fee is published Official sources

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Iran Capital Market Dealing Exam: Suggested Study Strategy

1Master the Securities Market Act of 1384, focusing particularly on Articles 3, 6, 32, 36, and 46-49.

2Understand the mechanics of the Tehran Stock Exchange order book: Price-Time priority, pre-opening call auctions, base volume (Hajm-e Mabna) calculations, and trading halts.

3Review the Margin Trading Instructions thoroughly, especially the formula for maintenance margin and mandatory margin call liquidation procedures.

4Study the Codal Information Disclosure Instructions, distinguishing clearly between Category A and Category B material corporate disclosures and their market reopening mechanisms.

5Be familiar with Islamic debt instruments (Sukuk Ijarah, Murabahah, Manfa'at, Standard Parallel Salaf, and Akhza Treasury Bills) and their economic roles.

Frequently Asked Questions

What is the Iran Capital Market Dealing Examination?

The Iran Capital Market Dealing Examination (آزمون معامله‌گری بازار سرمایه) is one of the seven core professional certifications administered by the Securities and Exchange Organization of Iran (SEO). It tests the legal, regulatory, and procedural rules required to be licensed as a securities and commodities brokerage trader.

What is the prerequisite for taking the Capital Market Dealing Examination?

A bachelor's degree or higher recognised by the Ministry of Science is required, together with the Principles of Capital Market certificate (اصول بازار سرمایه). SEO board resolution 331 of 1393 provides one exemption: holders of a recognised degree in a related field such as management, financial management, financial law, financial engineering, accounting, business management, economics, industrial management or financial mathematics, with a grade average above 15, may take the Dealing examination without first holding the Principles certificate, provided they reach the pass threshold.

What is the format and duration of the official examination?

The official exam is a single paper of 60 four-option multiple-choice questions answered in 75 minutes, on the subject Capital Market Dealing Regulations. Negative marking applies. The published pass threshold is 50 out of 100; SEO board resolution 331 of 1393 originally set it at 40, and the Professional Certificates Committee can revise it, so confirm the figure in force before you sit.

What happens after passing the examination?

After passing the SEO exam, candidates enroll in practical training programs administered by the Iranian Broker Association (SEBA) in their chosen market line (financial securities, mercantile/commodities, energy, or derivatives) to receive their official Trader Card.

Is this practice question bank an official examination simulation?

No. This question bank is an independent English-language study adaptation developed by OpenExamPrep to help candidates master the regulations and market mechanics. The official exam is administered in Persian.