TEHRAN, Oct. 22--As indices remained fragile on Saturday, Central Bank of Iran (CBI) governor said he is hopeful that the stock market situation will return to normal, stressing that the capital market will undergo certain changes.
Ebrahim Sheibani told ISNA that following the recent high-profile meeting of senior economic officials to review the main causes of stock market crisis, capital market structures will change in a way that indices will begin to rise soon.
He said that political developments will affect the economic situation, adding that the country has not severed trade ties with Britain and South Korea.
The Parliament has stipulated prison terms and stiff cash fines for misuse of insider information at the stock market.
Under the parliamentary ratification, those who trade shares using insider information will be sentenced to prison terms ranging from three months to a year and cash fines amounting to two to five times the amount they have acquired.
The penalties are stipulated in the Stock Market Bill, which was passed by the Parliament last week.
Heidar Mostakhdemin-Hosseini, who chairs the stock market’s Board of Directors, said last week that the parliamentary move will give the troubled stock market a new lease on life.
However it seems that efforts to bring to custody those misusing insider information will ultimately lead to major investors withdrawing their money from the stock market and invest them in safer places with lower risk of prosecution.

Sina-1 will be launched from Plesetsk cosmodrome in Central Russia on a Kosmos-3 booster rocket on October 27.

TEHRAN, Oct. 22--Iran will join the world’s satellite club next week with the launching of its first research satellite into space, reported ISNA.
According to Iran’s Embassy in Moscow, Sina-1 will be launched from Plesetsk cosmodrome in Central Russia on a Kosmos-3 booster rocket on October 27.
The satellite’s launch had been delayed earlier due to malfunction.
The chief of the press service of Russia’s Space Troops, Col. Alexei Kuznetsov, told Itar-Tass that the launch was put off because of a delay in the manufacture of Iran’s satellite Sina-1 that will be a part of the payload. The manufacturer of the Iranian satellite is Omsk’s company Polyot.
The launch of the research satellite that was developed in the Mozhaisky Military Space Academy was initially planned for August, but was postponed because it was not ready.
The launch into space of Iran’s first satellite will make Iran the 43rd country to possess its own satellite.
Iranian experts are engaged in the construction of space carrier vehicles, stressing that five satellite production projects are currently underway.
Mehran Mirshams, deputy head of Iran Aerospace Association, told ISNA earlier that Zohreh, Mesbah, ZS4, SM2S and Sepehr are the five satellite projects which are underway.
The official said Sepehr and ZS4 research satellites will also be built in the future.
Iran is one of the last Persian Gulf countries to have its own satellites despite the fact that it was the first in the region to initiate a national satellite program over two decades ago.
In January 2005 Russia and Iran signed an agreement in Tehran on the construction of Zohreh communications satellite. The launch of this new generation space vehicle is scheduled for 2007.

TEHRAN, Oct. 22--Iran’s crystal industry is planning to import 2.6 million euros worth of modern machinery from Austria.
Ahmad Amir-Ahmadi, who heads the Iranian Glass and Crystals Association, told ILNA that fine quality crystals are produced in Germany, Italy, the United States and the Czech Republic, whereas Austria has the world’s most advanced crystal manufacturing industry, which is why Iranian crystal manufacturers are willing to import machinery from that country.
He said that private Iranian companies have signed cooperation agreements with major Austrian companies, which export worldwide.
He further said that Iran has low-cost workforce and easily accessible raw materials, which has made it one of the best countries for crystal industry investments.
“The Ministry of Industries and Mines and Bank Tejarat have agreed to help facilitate import of machinery (from Austria),“ he said, adding that a crystal manufacturing unit will be established using Austrian machinery and with a production capacity of 13 tons per day.
He said that glassware and crystal industry generates high value-added, stressing that the industry has improved greatly over the past 15 years.

Iran manufactures 80 percent of the Pride parts while 20 percent of sensitive engine components are imported.

TEHRAN, Oct. 22--Iranian automakers are expected to face a serious shortage of auto parts following the reported ban on import of goods from Britain and South Korea, reported ISNA.
The giant automaker Saipa has been unable to import CKDs (complete knockdown) kits of Kia Rio from South Korea.
The company also produces the Kia Pride, which is considered to be its main product. Saipa will face difficulty importing parts from Korea for the Pride, if the ban continues.
The company plans to assemble some 12,000 units of Kia Rio this year. Pride production will also reach 315,000 units, once the parts are supplied.
Iran manufactures 80 percent of the Pride parts while 20 percent of sensitive engine components are imported. The company has said it will try to purchase these parts from other countries.
Kerman Khodro, another Iranian carmaker which is in close cooperation with the Korean automotive industry, produces Hyundai Avente and Verna. Some 12,000 units of Verna and 1,500 Avente models were planned to be produced by March 2006.
Import of car parts from Korea was expected to reach $350 million by next March, when a billion euros worth of parts will be imported from France.
South Korea exported $2.1 billion worth of goods to Iran in 2004, up by 20 percent against the figure for 2003.
The reported ban on import of goods from Korea was said to have been enforced from October 17.
Iran’s Ambassador to Seoul Jahanbakhsh Mozaffari was summoned to the Korean Foreign Ministry earlier to explain why Korean goods have been held up at the customs.
South Korea was one of the countries which voted for the referral of Iran’s nuclear dossier to the United Nations Security Council last month.

TEHRAN, Oct. 22--Following reports that Israeli goods are being smuggled into Iran, a lawmaker from the southern port city of Mahshahr said here on Saturday that heavy penalties must be enforced for those engaged in illegal trade in such goods.
Kamal Daneshyar told ISNA that the people must be informed about the ban on Israeli goods.
“The Islamic Republic of Iran Broadcasting (IRIB) must be delegated the task of informing the public on the embargo on Israeli goods,“ he said, calling for legal action against those trading in Israeli products.
Abadan Customs director, Habib Galleh-Dari, also told ISNA that state organizations based in the southwestern province of Khuzestan must join hands to prevent the illegal entry of Israeli goods into the country.
He said hefty cash fines and greater border police controls could help reduce the import of Israeli goods.
However, Saeed Ansari, an MP from Abadan, refused to confirm reports that Israeli goods are being smuggled into Iran from southwestern border cities, stressing, however, that security officials must not allow this to take place.
Majid Nasseri-Nejad, an MP from the southwestern city of Shadegan, also told ISNA that the best way to prevent the entry of Israeli goods is to inform the public on the ban on such goods.