Duyurular

The Turkish Capital Markets Board's Announcement – Decision No. 18/574 (Dated March 23, 2025)

The Capital Markets Board (“CMB”) Bulletin No. 2025/18 (“CMB Decision”) introduces regulations regarding the prohibition of short selling and flexibility in share buybacks, effective from March 24, 2025.

Summary of the CMB Decision:

  •  Temporary Prohibition on Short Selling Transactions:

Short selling transactions in the Borsa Istanbul Equity Market are temporarily prohibited until April 25, 2025.

Intraday positions opened without using the short-selling button and closed within the same day are also included in this prohibition.

  •  Flexibility in Share Buybacks:

The restriction in Article 15(1)(b) of the Communiqué II-22.1, which states that “the buyback order price cannot be higher than the existing price offers or the last executed sale price”, along with the related provision in Principle Decision No. i-SPK.22.8, will not be applied.

The restriction in Article 15(1)(a) of the Communiqué II-22.1, which prohibits placing orders or executing buyback transactions during the opening session and the last 15 minutes of the first session, as well as during the opening and closing sessions of the second session, will not be applied.

The upper limit on the nominal value of shares subject to buyback (previously set at 10% of the paid-in or issued capital under Article 9(3) of the Communiqué II-22.1) will not be applied.

  • Flexibility in Margin Trading Requirements:

Pursuant to Article 17 of the Communiqué Serial: V, No: 65, the minimum equity maintenance ratio for margin trading transactions has been reduced from 35% to 20% until the end of the trading session on April 25, 2025.

Investment firms may apply this flexibility in accordance with their risk policies, while considering customer requests.

With this resolution, the CMB has temporarily prohibited short selling transactions in the BIST Equity Market while suspending certain limits and restrictions on share buybacks. Additionally, flexibility has been introduced for margin trading equity maintenance requirements until April 25, 2025.

You can access the full text of the CMB Decision (in Turkish) here.

 

Kind regards,

Zumbul Attorneys-At-Law

info@zumbul.av.tr

 

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