Latest updates

Borsa Istanbul prepares for public offering
  • Turkey
  • 06 January 2015

In a recent development with respect to the status of Borsa Istanbul (previously the Istanbul Stock Exchange), the Council of Ministers adopted a decree permitting the sale of Borsa Istanbul shares in a public offering. As per the decree, Group B shares of Borsa Istanbul which are currently held by the Treasury will be offered to the public, up to a limit of 42.75% of the total share capital.

New era for investment funds
  • Turkey
  • 14 October 2014

The new Capital Markets Law has introduced important changes regarding investment funds in order to establish a regime that is consistent with that of the European Union. The Capital Markets Board has issued the Communiqué on the Principles Regarding Investment Funds and recently released the Guide Regarding Investment Funds in order to implement, explain and provide details of the rules stipulated under the law.

Dısclosure regıme under new capıtal markets law
  • Turkey
  • 01 July 2014

Disclosure requirements for public companies are set out under Article 15 of the Capital Markets Law and the Communiqué on Disclosure of Specific Events (II-15.1) issued thereunder. It is also expected that the Capital Markets Board will issue a new guide in relation to disclosure requirements to clarify the related rules and procedures for market players.

New Capital Markets Law cracks down on insider trading and manipulation
  • Turkey
  • 15 April 2014

The new Capital Markets Law introduces broader and stricter redefined liability provisions when compared with the old legislation. The law aims to provide for stable, transparent and reliable operation of the capital markets. However, it will be secondary legislation and the implementation of these rules that determine the success of the new law against capital market offences.

Capital Markets Board takes stricter approach to director liability
  • Turkey
  • 28 January 2014

Following the bankruptcy of Turkish jewellery company Goldaş, and the resultant grave effects on many investors, the Capital Markets Board has rendered a decision in which it imposed severe penalties on members of the company's board of directors for misleading investors. As a result of the decision, directors of a company are encouraged to be even more diligent with respect to their capital markets-related activities.

Rise in sukuk market offers new investment opportunities
  • Turkey
  • 01 October 2013

Although a relative newcomer, Turkey is proving to be a strong entrant to the market for sukuk (the Islamic equivalent of bonds). Recent changes to the regulatory and legislative frameworks and new tax incentives are expected to facilitate interest in investors from Gulf countries and create new opportunities for the recently expanding sukuk market in Turkey.

Enactment of secondary legislation now in progress
  • Turkey
  • 16 April 2013

Following the entry into force of the new Capital Markets Law, the enactment process of the secondary legislation is continuing. In this regard, the Capital Markets Board recently published draft communiqués on the issuance of debt securities, shares and real estate certificates.

New Capital Markets Law aims to increase investors' rights
  • Turkey
  • 05 February 2013

The new Capital Markets Law recently entered into force. The law aims to align the regulations and market practice in Turkey with those of the European Union and strengthen investor protection and market liquidity. Amendments to the Commercial Code, which acts as the secondary basis of legislation for all capital markets regulations, also played a key role in the new law's codification.

Board attempts to reintroduce trading of real estate certificates
  • Turkey
  • 27 November 2012

The Capital Markets Board recently announced the highlights of its latest revisions to the Communique on Principles Regarding Registration of Real Estate Certificates. According to the announcement, the board aims to encourage investment in real estate certificates and create an effective source of financing for project developers. The revisions should pave the way for the trading of active real estate certificates on the stock exchange.

Government debt securities: new custody and monitoring system
  • Turkey
  • 21 August 2012

A new system for custody and settlement of government debt securities provides for the holdings of bank or brokerage house clients to be held at the Central Registry Agency on a client-name basis, segregated from the intermediary institution's proprietary portfolios. This provides greater comfort to investors upon a bank or brokerage house's insolvency.

Draft of revised capital markets law released for review
  • Turkey
  • 06 June 2012

The Capital Markets Board recently released a draft of the revised Capital Markets Law for review by the public, professionals and practitioners. Pursuant to its preamble, a number of reasons have triggered the board's preparation of a brand-new text, a process which took two years. Having canvassed the opinions of professionals and practitioners, the board seems eager to finalise the draft law shortly.

Using bonds to obtain credit
  • Turkey
  • 30 August 2011

In addition to principal capital and reserve funds, which consist of accumulated earnings, incorporated companies avail of loans to carry out their activities and achieve their goals. Such loans are based first on their net assets, and second on their foreign assets.

Capital Markets Legislation: Highlights from Recent Amendments
  • Turkey
  • 07 September 2004

Throughout late 2003 and early 2004 the Turkish Capital Markets Board (CMB) promulgated a number of new regulatory acts. This update outlines the highlights of the new legislation, including the new Communiqué on the Sale and Registration of Shares with the CMB.

Highlights from Amendments to the Capital Markets Legislation
  • Turkey
  • 25 May 2004

The domestic Capital Markets Board promulgated a number of new regulatory acts towards the end of 2003. The Capital Markets Law authorizes the board to issue regulations on the cumulative voting system with the aim of striking a balance between majority and minority shareholders of publicly held companies, and securing the rights of minority shareholders.

Recent Developments in Securities Regulation
  • Turkey
  • 19 August 2003

As well as introducing new concepts in Turkish securities regulation to the communiqués which are currently in effect (eg, the shelf registration system), the Capital Markets Board has issued several important new communiqués in the past few months.

Sector Developments
  • Turkey
  • 25 February 2003

The Capital Markets Board has announced its programme for 2003. Highlights include the creation of an arbitration organization in order to enable the efficient resolution of securities disputes, the establishment of a best practice code and the preparation of an amendment to the Turkish Commercial Code permitting joint stock corporations to acquire their own shares.

Communique Changes
  • Turkey
  • 30 January 2001

The Capital Markets Board has recently amended several communiques, including those concerning portfolio management, mutual funds, margin trading and capital adequacy of intermediary institutions.

Overview (October 2000)
  • Turkey
  • 31 October 2000

Including: Background; Activities; Institutions; Foreign Intermediary Institutions; Foreign Instruments; Foreign Mutual Funds

Trading in Depository Receipts
  • Turkey
  • 01 August 2000

The Capital Markets Law, enacted in 1981, opened the way for a regulated and organized securities market in Turkey. The Istanbul Stock Exchange, which permits trading in depositary receipts, was established five years later. This update looks at the listing requirements for these financial instruments.

Selvi & Ertekin