Securities & Exchang e Organization of

The Regulations Governing the Transactions on the Contract

on the

(Comprising 48 articles and 14 notes and approved on March 3, 2010, by the Securities and Exchange Organization (SEO’s) board of directors)

Chapter one-Definitions and General Provisions:

Article 1- The definitions provided for all the terms and phrases used in article 1 of the Securities Act of I.R.I. shall also apply for the purposes used herein. Other terms are defined as follows:

1- The last trading day means the last day during which it is possible to execute an option contract of co-month sub- group in the derivate market. 2- house means a unit in the Central Depository Company which is charged with the , clearing and exercise of an option contract under the existing regulations. 3- call increase means a notice which is sent by the clearing house to the so as to increase the broker’s margin amount up to the level of the required margin. 4- Exercise value of option contract is obtained by multiplying the contract size in the exercise price.

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5- Market value of underlying stock in the option contract is obtained by multiplying the contract size in the closing price of the underlying in the spot/cash market. 6- Transactional value of option contract is obtained by multiplying the contract size in the option contract price. 7- Exercise/Strike means the exercise of option contract in compliance with the existing regulations. 8- Corporate action means capital changes and distribution as effected by the issuer. 9- Contract size means the number of shares that the seller has undertaken to buy or sell in the option contract. 10- The first trading day means the first day on which it is possible to trade an option contract of a co-month subgroup in the derivate market. 11- market means the futures contracts transactions and option market in the . 12- Cash/spot market means the stock transaction markets in the Tehran Stock Exchange. 13- Agent means a bank which is designated by the Central Depository Company to carry out banking operations pertaining to the settlement and clearing affairs and exercise of an option contract. 14- Closing the means release from an obligation of the open position holder by adopting the position in the same trading symbol, or forfeiture of the right of the

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open long position holder by adopting the short position in the same trading position. 15- Exchange means the Tehran Stock Exchange (a public joint stock entity.) 16- Mark-to-market means a process during which the clearing house updates the required margin at the end of the trading session and issues the margin call increase as the case may be. 17- Risk statement means a form which is signed by the client prior to the start of the trades in the derivate market and indicates that he is fully aware of the transaction risks in such market. 18- Allocation means a process at the end of the daily transactions during which the clearing house determines some of the holders of open short positions to fulfill the obligations concerning the option contacts exercised under the existing regulations. 19- Physical settlement means the settlement of the exercised option contract which shall include the transfer of underlying stock and payment of the strike price in the option contract. 20- Cash settlement means the settlement of the option contract in the circumstances that the holder of the open short position after the exercise has not met the contract obligations. In such a case, the spread of the strike price in the option contract and the market value of underlying stock

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in the option contract shall be credited to the accounts of the parties under the existing regulations. 21- Adjustment means the change in the strike price or in the contract size following the issuer’s corporate action in the manner provided in the existing regulations. 22- Trading session means a continuous period of time to execute transactions during a business day as established by the Exchange board of directors. The Exchange may establish several trading sessions during the course of one business day. 23- Minimum price movement means a fraction of the option price in which the order price changes must be a proper multiplier of it and its amount is at least one rial. 24- Maintenance margin means a ratio of the required margin whereby any reduction in the broker’s operating account to become lower than this ratio shall lead to giving a notice for the margin call increase. 25- Broker’s strike account means the broker’s bank account which is determined on the basis of the particulars given by the Depository Company for the purpose of settling the amounts related to the option exercise. 26- Broker’s operating account means the broker’s bank account which is opened on the basis of the particulars given by the Depository Company for the purpose of depositing the

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margins as well as settling and clearing the option contracts transactions. 27- Compensation means a sum of money which is received as a against the non-performance of obligations by the open short positions holders as suited to their positions subject to the conditions set down in the contract specifications. 28- Trading period means the interval between the first trading day and the last trading day in each option contract. 29- Business/working days means the trading days allowed to execute option contracts as established by the Exchange board of directors. 30- Pro rata method means one of the allocation methods on the basis of which the exercised option contracts are apportioned among the holders of such contracts pro rata to the number of open short positions. 31- Random method means one of the allocation methods on the basis of which the exercised option contracts are randomly allocated to the holders of the open short positions. 32- Position tracking method means one of the allocation methods on the basis of which the trading record of the exercised option contract is measured and the exercised option is allocated to the issuer of such contract.

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33- Time method means one of the allocation methods on the basis of which the exercised option contracts are allocated to the holders of the open short positions by maintaining the time priority. 34- Expiration date means a date after which the option contract shall expire. 35- Co-month subgroup means a set of option contracts of an option group which has the same expiration date. 36- Strike style means one of the various strike methods which will determine the time periods allowed for exercise. 37- Order means the client’s request for buying or selling (or writing) the option contract. 38- Order limit means the maximum authorized number of option contracts in return for each order. 39- Open positions limit means the maximum authorized number of open positions of the client, broker or market in each co-month subgroup as determined in the contract specifications. 40- Limit of positions in the same direction means the maximum authorized number of the same-direction positions of the client and the broker in each co-month subgroup as determined in the contract specifications. 41- Underlying share/stock means the share or stock which underlies the option contract.

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42- Depository Company means the Central Securities Depository and Settlement Company. 43- Client’s/Customer’s statement of account means the information and evidence related to the financial statements between the client and the broker. 44- Margin criteria means the criteria attached hereto on the basis of which the margin amounts shall be calculated. 45- Strike price spread means the spread between the strike price of the trading symbols of a co-month subgroup as established in the contract specifications. 46- Option contract means a contract under which the securities seller shall, at the request made by the buyer, undertake to trade a certain number of underlying shares at the strike price. The buyer shall be allowed to trade in such securities under the contract at the specified period or periods in the future. The seller/writer of option securities shall receive from the securities buyer a certain amount in return for this obligation. In order to avoid the seller’s rejection of meeting his obligation under the contract, the seller shall commit himself by the contract to deposit a sum as the margin with the broker or the clearing house and to adjust it appropriate to the price movements in the option securities. The buyer or the seller each shall, in return for a specified amount, be allowed to transfer their option or obligations to a third party

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who will act as a substitute for them. The option securities may be in the form of or . 47- At the money option means an option contract in each co- month subgroup when the strike price of the option equals the closing price of the underlying share in the cash market. 48- Out-of-the-money option: as to the put option contract, it means any option of the co-month subgroup in which the exercise price of the option is lower than the closing price of the underlying share in the cash market and as to the call option contract, it means any option of the co-month subgroup in which the exercise price of the option is higher than the closing price of the underlying share in the cash market. 49- In-the-money option: as to the put option contract, it means any option of the co-month subgroup in which the exercise price of the option is higher than the closing price of the underlying share in the cash market and as to the call option, it means any contract of the co-month subgroup in which the exercise price of the option is lower than the closing price of the underlying share in the cash market. 50- Client-broker contract means a contract which is concluded between the client and the broker and the rights and obligations of both parties are stipulated therein. The provision of this contract shall be specified by the Exchange board of directors.

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51- Strike/exercise price means the price on which the buyer and the seller (or writer) has agreed in an option contract for the purchase or sale of a security/underlying share. 52- Closing price of option means the closing price of any option contract which is calculated and announced by the Exchange at the end of trading day. 53- Option premium means the price of an option contract in return for one share on the basis of which the purchase or sale order is fulfilled. 54- Exercise/strike fee means a fee which is received from the parties to the option contract when such contract is exercised. 55- Transaction fee means a fee which is received from the client in return for the conduct of the option contract transaction. 56- Ownership code means the customer’s identifier to conduct the securities transactions. 57- Option class means a set of option contracts in an option group which is of the same type (purchase or sale). 58- Option group includes all the call and put option contracts based on an underlying share. 59- Month contract means one of the solar 1months in which the expiration date of option contract falls.

1 Based on the Iranian calendar, the solar year runs from March 20 of the year and ends on March 20 of the next year

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60- Open position means the client’s net positions in any trading symbol which may include purchase or sale. The open long position shall indicate the continuous possibility of using the power under the option contract and the open short position shall indicate the continuity of obligation under the option contract. 61- Positions in the same direction means the open short positions in the call option and open long positions in the put option or the open long positions in the call option and the open short positions in the put option in each co-month subgroup of the option contract. 62- Procedure of option entry includes the number of option contracts on the first trading day of a co-month subgroup, fixing of the strike price based on the strike price spread and the conditions of new option contracts set forth in the contract specifications. 63- Margin means the funds received in the form of an external condition from the holder of open short position so as to prevent any rejection by the parties from fulfilling the contractual obligations. 64- Additional margin means an amount added to the required margin to cover the risk of price movements appropriate to the open positions and based on the prevailing standards for margin amounts.

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65- Initial margin means an amount received from the holder of open short position as a security for the fulfillment of obligations when taking the open short position appropriate to the open positions (whether short or long) and based on the standards for margin amounts. 66- Variation margin means an amount which shall be deposited with the clearing house after receipt of the margin call increase. 67- Required margin means an amount which shall be determined daily appropriate to the open positions (whether short or long) and based on the standards for margin amounts. If the paid margin falls below the maintenance (minimum) margin, the dealer shall have to increase the required margin amount. 68- Council means the Exchange Listing Council.

Chapter two-Specifications of contract:

Article 2- The specifications of a contract in an option group shall contain the following details:

1- Underlying stock/share 2- Trading symbol including: Underlying share – contract month – strike price – type of option contract

3- Contract size 4- Strike price interval/spread

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5 - Margin amount including: 6- Strike style

Initial margin, required margin, maintenance margin and additional margin 7- Allocation method 8- Minimum price movement

9- Contract months 10- Trading period

11- Price current unit 12- Limit of open and same- direction positions

13- Compensations 14- Limit of collateral receivable from client

15- Procedure of option 16- Strike manner contract entry 17- Trading hours and days 18- Fees

19- Settlement after 20- Orders limit exercise

Note 1 – Items 1 to 14 in the specifications of the contract shall be approved by the Listing Council and items 15 to 20 shall be set forth under the existing rules.

Note 2 – All items shall be made public in the form of the contract specifications.

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Article 3- The Exchange shall make the trading notice of option contract public via its website in the forms prescribed by the Exchange Listing Council at least three business days prior to the first trading day of each co-month sub-group.

Article 4- The holder of open long position may exercise his option contract based on the strike style stipulated in the specifications of the contract. Pursuant to the existing regulations, the strike may be exercised until the last trading day (American style), solely on the last day (European style) or in the course of certain trading days (Bermudan style).

Article 5- The open and the same direction positions should not exceed the specified limits. The limit of open positions shall be determined at the level of customer, broker and the market and the limit of the same direction positions at the level of customer and the broker.

Article 6- The compensations provided in the specifications of the contract shall be directly paid out of the broker’s operating account and, in case of insufficiency, out of the broker’s securities deposited with the clearing house. If the securities are not sufficient, the broker shall have to pay the relevant compensations as instructed by the clearing house. Accordingly, the broker shall be allowed to withdraw the compensations out of the client’s securities or guaranteed funds and, in case of insufficiency, claim them from the customer; the evidence related to such measures shall be maintained in the brokerage records.

Article 7- During the first trading day in each co-month subgroup at least two in the-money-option contracts, one at-the-money option contract and two out- of-the money option contracts shall be entered. This matter shall be stipulated in the contract specifications under the title of the procedure of option contract entry.

Article 8- Entry of option contracts shall be made during the previous trading day and by taking account of the strike price interval based on the closing price of underlying share in the spot market.

Article 9- From the first trading day until 5 business days prior to the last trading day in each co-month subgroup, the Exchange shall, before the start of daily transactions, have to introduce at least two new option contracts in

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that co-month subgroup via its website when the following circumstances prevail:

a) the closing price of underlying share in the cash market during the previous trading day, is above or equal to the highest strike price in option contracts; or b) the closing price of underlying share in the cash market during the previous trading day is below or equal to the lowest strike price in the option contracts.

Note – In any event, the new contracts must be introduced in a manner that there shall be the possibility of performing at least two in-the-money option contracts and two-out-of-the money option contracts in which their strike price can differ from the closing price of underlying share in the cash market during the previous trading day at a rate of one or two of the strike price interval.

Article 10- The option contract shall be exercised only at the request of the open long position holder and under the existing regulations as stipulated under the title of “strike manner” in the contract specifications.

Article 11- Allocation of the exercised option contracts to the open short positions shall be done on the basis of tracking method. If, at the discretion of the Listing Council, the tracking method is not practicable on the ground of high costs or technical troubles, it shall be permissible to employ one of the allocation methods, pro rata time or random. The allocation method of the option contracts shall be specified in the contract specifications.

Note – If the designated allocation method is different form the position tracking method, the option sellers shall, at the time of making a contract, have to empower the clearing house in order that this house can refer their contracting customer or any other option holder to them for the exercise of their option.

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Article 12 - The trading hours and days in the derivative market shall be established by the Exchange board of directors.

Note 1– The changes in the trading hours and days shall have to be made public through the Exchange website at least 3 business days before they take effect.

Note 2– The Exchange managing director shall have the authority to change the opening and closing hours and lengths of trading session if any technical problem occurs in the trading system. Such changes shall immediately be made public via the Exchange website and the trading system. The Exchange shall have to retain the appropriate evidence related to the technical problems in the trading systems in its records and shall, if requested, send them to the SEO.

Article 13- The fees of the option contracts market include the transaction fee and exercise fee. The exercise fee shall be received from all holders of the open positions in which their option contracts have been settled physically or in cash.

Article 14- If the holder of long position exercises the option contract, the holder of short position shall have to perform the physical settlement obligations subject to the prevalent rules. Where the holder of open short position does not meet the physical settlement obligations, the option contract shall be settled in cash on the basis of the closing price of underlying share on the exercise day and the compensation thereto shall also be received.

Article 15- The Exchange shall be allowed to designate the maximum number of authorized option contracts in return for each order under the title of “order limit” and shall stipulate this matter in the specifications of contract.

Chapter three-Entry of client’s orders:

Article 16- The or broker/dealers who have obtained the required licenses from the SEO, and have been listed on the Exchange and are equipped as determined by SEO with the necessary softwares for the option contracts, shall be authorized to carry out transactions in the derivate market. Involvement in the derivative market activity shall be

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deemed the adherence to the provisions of the existing regulations by the broker/dealer.

Article 17- The brokers’ agents shall have to have professional certificates in the derivative market dealership and should have completed the requirements of the related courses so as to access the trading system for conduct of transactions in the derivative market.

Article 18- The Exchange shall be permitted to impose restrictions on the number of the brokers that a client may carry out trades through them. The broker and the client are both required to comply with the provision of this article.

Article 19- In order to engage in the derivative market, all the clients shall have to complete and sign the form of the risk statement and the contract made between the client and the broker at the brokerage house. The risk statement form shall be prescribed by the Exchange. Article 20- The broker shall, at the time of receiving the purchase or sale orders, have to deposit the transaction fees plus the transactional value of the option contract or the required margin in the client’s account as the case may be. The client’s account shall be secured out of the amounts credited into the broker’s operating account, his credits in the broker’s books and the funds owned by the broker.

Note – The broker shall have to create a separate heading in its/his books for each client and shall ensure the adequacy of funds in his account when the client’s orders are being executed.

Article 21- The broker shall, in addition to the initial margin, be entitled to receive certain securities or guarantees from the client up to the limit set in the specifications of the contract so as to ensure the fulfillment of obligations by the client.

Article 22- The Exchange board of directors shall designate the types of orders and their validity in the derivative market based on the technical considerations as prescribed by the regulations governing the procedures for securities transactions on the Tehran Stock Exchange approved by the SEO’s board of directors.

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Article 23 - The customers’ identification process, receipt and entry of their orders as well as their trades and settlement record keeping shall be performed in conformity with the rules and procedures approved by the SEO.

Chapter four-Transaction procedure:

Article 24- The trading stages in the derivative market shall be determined under the regulations governing the procedure of securities transactions on the Tehran Stock Exchange as approved by the SEO’s board of directors.

Article 25- The orders entered in the trading system shall be executed on the basis of price priority and, if prices are equal, on the basis of time priority of orders entry.

Article 26- The Exchange shall, within one hour after the end of daily trades at the latest, calculate the closing price of the option contracts in each trading symbol as follows:

a) when an option contract is transacted in one trading day, the closing price of the option contract shall be weighted average price of the transactions carried out during that trading day; b) when an option price is not transacted in one trading day, the closing price of the previous trading day shall be used as the closing price.

Article 27- If the broker, owing to the error made by the user or in the trading system, objects to the transactions so carried out, he/it shall have to submit his/its objection to the Exchange until the end of the trading hours of the same day while stating the reasons for investigation. The decision made by the Exchange shall be enforceable.

Article 28- If there is a suspicion of price manipulation in transactions or unusual changes are noticed in prices, the SEO or the Exchange managing director shall be authorized to issue instructions to halt the trading symbol of the option contract. The halt of the trading symbol by the Exchange managing director shall be allowed for at most three trading sessions and solely the SEO’s consent shall be required for a period of more than three trading

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sessions. The reopening of the symbol shall be possible upon the order of the instructing authority, as the case may be. The instructions influenced by the foregoing facts may, at the discretion of the instructing authority, be revocable by the Exchange.

Article 29- The client shall be allowed to close his open position until before the end of transactions during the last trading day.

Chapter five-Settlement and clearing system:

Article 30- The broker shall have the responsibility of meeting the client’s obligations before the clearing house as described in the existing regulations. Obviously, the broker’s responsibility shall not release the client from meeting his obligations before the brokerage.

Article 31- In order to carry out transactions in the option contracts market, the broker shall have to open an operating account and a strike account with the agent bank. The broker shall, when opening each account, give permission to the clearing house to withdraw money from and freeze such accounts and handle any other operations relating to the margin, settlement and clearing transactions as well as settling the exercised option contracts pursuant to the existing regulations.

Article 32- The entering of orders in the trading system shall be subject to the deposit of margin or the transaction value of contract in the broker’s operating account as the case may be.

Article 33- When the balance of the broker’s operating account is above the required margin, the broker may submit its/his request to the clearing house for the refund of surplus amount no later than the end of daily trades. The clearing house shall repay the given amount to the broker no later than the end of the following business day.

Article 34- The broker shall have to deposit a collateral security with the Depository Company so as to cover his/its obligations before the clearing house. The value and type of acceptable collaterals and their applicable standards shall be specified by the Depository Company board of directors.

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Article 35 - The settlement and clearing of option contracts shall be accomplished at the end of the daily transactions as set out below:

a) The broker’s transactions shall be settled on the basis of transaction value of option contracts and with a view to the relevant fees and legal deductions. Accordingly, the broker’s net credit or debits shall be calculated and deposited in his/its accounts; b) The clearing house shall establish the broker’s required margin in compliance with the prevailing rules; c) Should the balance of the broker’s operating account fall below the maintenance (minimum) margin, the clearing house shall send a margin call increase to the broker no later than the same trading day; d) After the receipt of margin call increase, the broker shall have to pay the variation margin before the end of the trading session of the following business day or take measures to close the client’s open positions for which the margin obligations have not been serviced under the existing regulations.

Note – If the broker, for any reason whatsoever, does not meet his/its obligations during the time-limit fixed in this article, the clearing house shall seek the performance of the broker’s obligations out of the deposited collaterals.

Article 36- Increase in the open short positions for the broker who has received the margin call increase shall, appropriate to the margin call increase, be possible after payment of variation margin or closure of that portion of the client’s open positions for which the margin obligations have not been honored.

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Article 37 - Upon announcement of the closing price of option contract by the end of the same trading day, the clearing house shall send a report to the broker containing at least the following items:

1) the broker’s open positions by a breakdown of clients and trading symbol; 2) the transactions performed by the broker by a breakdown of clients and trading symbol; 3) the broker’s operating account balance; 4) the amount of required margin by a breakdown of brokers and customers; 5) the broker’s debits and credits for the transacted trades by a breakdown of customers; 6) transactional fees and legal deductions.

Article 38- The additional margin shall be calculated by the clearing house and subject to the prevalent standards to be accounted in the required margin. Upon exercise of the additional margin, if the broker’s operating account balance falls below the minimum/maintenance margin, he/it shall be sent a margin call increase.

Article 39- The operations on the required margin for the customers holding open positions shall be achieved by the broker as follows:

1- after receipt of the clearing report under article 37 herein, he/it shall calculate the client’s required margin under the prevailing standards and then shall credit the net amounts to the client’s account upon deduction of fees and legal taxes; 2- if, upon completion of the above operations, the client’s margin with the broker falls below his maintenance (minimum) margin, the broker shall report the matter to the client prior to the start of the next day’s trading

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session as stipulated in the contract signed between the client and the broker; 3- if the client does not increase his margin amount up to the limit of the margin required for the previous trading day until one hour after the start of the next day’s transactions, the broker shall, by entering the market size, have to directly close that portion of the client’s open position for which the margin obligations have not been met during the same trading day.

Chapter six-Strike/exercise process:

Article 40- The exercise of option contract shall solely be possible on the days allowed for the strike style.

Article 41- If the holder of open long position wishes to exercise the option contract, he shall have to submit his request for this purpose no later than 5 minutes after the end of daily transactions in the manner stipulated in the contract between the client and the broker.

Note 1– The accepting of application for the exercise of put option contract shall require the security of the exercise value of the contract by the open long position holder and the accepting of application for the exercise of call option contract shall require the existence of underlying shares adding up to the number in the contract size in the ownership code of the open long position holder.

Note 2– It shall not be possible to exercise the option contract at the rate of a fraction from the contract size.

Note 3– If, upon submission of application for exercise, there is the possibility of exercising a number of one client’s contracts, the exercise shall be handled on the basis of the same number of contracts.

Article 42- The broker shall, within 15 minutes after the end of daily transactions, have to submit the applications for exercise as indicated in

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article 41 of the existing rules. The broker’s statement shall serve as a basis for allocating the amounts available in the broker’s exercise account by a breakdown of customers.

43- Upon expiry of the deadline for submission of the requests for exercise by the broker, the clearing house shall take the following measures:

a) to adjust the number of requested positions for exercise to the client’s open long positions in each trading symbol; b) to examine the adequacy of the broker’s strike account for the exercised call option contracts; c) to consider the sufficiency of underlying shares in the ownership code of the long position holder for the exercised put option contracts; d) upon consideration of items a, b and c in this article, the holders of open long positions in which it is possible to perform the request for their exercise shall be designated, whereby the holders of open short positions versus them shall be designated solely for such persons in the manner arranged in the contract specifications; e) the clearing house shall notify the broker of that group of the brokers’ open short positions by a breakdown of the customers who should meet their obligations along with the level of such obligations within an hour after the end of daily transactions;

Note – When the request submitted by the broker is not exercised owing to the absence of conditions under paragraphs a, b and c in this article, the broker shall have to pay the strike fees notwithstanding the nonperformance of application for exercise;

f) the broker shall, within an hour and half at the latest after the end of daily transactions, have to indicate the exercise-related obligations of the

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holders of allocated open short positions in the manner specified in the contract signed between the client and the broker; g) the holders of allocated open short positions shall, for the purpose of put option contract, have to pay the broker a sum of money being equivalent to the strike value of the option contract within two hours after the end of daily transactions; h) the broker shall, within two and a half hours at the latest after the end of daily transactions, have to send the clearing house the list of the open short position holders who have paid the strike value of the option contract and shall deposit in their accounts the amounts required for the exercise of option contract; i) the allocated option contracts which are exercisable shall include: 1- the short positions of the put option contracts that have paid the strike value of option contract based on the list indicated to the clearing house by the broker; 2- the short positions of the call option contract for which the underlying share is available in their ownership code with the Depository Company as has been surveyed by the clearing house; j) the clearing house shall make a physical settlement of the option contracts allocated to be exercised by the end of the strike day. For this purpose, the Depository Company shall transfer the underlying share of the option contract to the ownership code of the short or long position holder with respect to the type of option contract (call or put) and then pay its amount into the counterparty’s account;

13 Mollasa dra Ave., Vanak Sq., Tehran 19919 IRAN. Tel: (98 21) 88679578 Fax: (98 21) 88679544 E-mail: [email protected] [email protected]

Securities & Exchang e Organization of Iran

k) the non-exercisable allocated option contracts shall be settled in cash and the broker shall be liable for compensation payments as stipulated in the contract appropriate to the short positions of the clients that have been settled in cash.

Article 44- It shall not be possible to exercise the option contract during the period of trading symbol halt. Only the option contract which will remain halted by the end of the trading period may be exercised on the last trading day whereby the option contract must be settled in cash on the basis of the last closing price of underlying stock in the spot market.

Chapter seven-Adjusting the option contract based on the corporate action:

Article 45- The halt and reopening of the trading symbol of option contracts shall be handled simultaneously by halting and reopening the underlying stock in the cash market, using the same method.

Article 46- The capital increase of the issuer’s underlying stock shall result in the adjustment of strike price, size of option contract and positions limit of an option contract group. In such a case, the Exchange shall, before reopening of the trading symbol of option contracts, make the required adjustments as follows:

Note 1– If the size of adjusted contract contains a decimal part, the number so obtained shall be rounded off to the closest proper number.

Note 2– After the corporate action and before reopening of the trading symbol of the option contract, the adjustments shall be made public through the Exchange website.

13 Mollasa dra Ave., Vanak Sq., Tehran 19919 IRAN. Tel: (98 21) 88679578 Fax: (98 21) 88679544 E-mail: [email protected] [email protected]

Securities & Exchang e Organization of Iran

Article 47- The approval of dividend distribution by the general meeting of the issuer’s underlying stock shall result in the adjustment of the strike price of option contracts in an option group. In doing so, the Exchange shall, before reopening of the trading symbol of the option contracts in an option group, make the required adjustments as follows:

Chapter eight-Other provisions:

Article 48- All the duties which the insiders of underlying stock must perform with respect to the same under the rules of law shall also apply to the option contracts thereupon.

13 Mollasa dra Ave., Vanak Sq., Tehran 19919 IRAN. Tel: (98 21) 88679578 Fax: (98 21) 88679544 E-mail: [email protected] [email protected]