Amendments introduced in April

• Precedent on Equity Based Crowd Funding Communiqué (i-SPK.35/A.1

The Capital Markets Board of Turkey (“CMB”) published a precedent on the application of Equity Based Crowd Funding Communiqué and introduced certain restrictions that such platforms need to follow.

• Procedure on Algorithmic Transactions in Equity Market and BISTECH Pre-Transaction Risk Management Procedure were updated 

Borsa İstanbul (“BIST”) updated the Procedure on Algorithmic Transactions in Equity Market and the Pre-Transaction Risk Management Procedure. Amendments were made in parameters to be taken into account and the procedure to be followed in managing pre transaction risks. 

• Market Cap Weighted Stock Indices Ground Rules were updated

BIST Market Cap Weighted Stock Indices Ground Rules were updated, because “BIST 50-30”, “BIST 50-30 Weight Capped 10” and “BIST 50-30 Weight Capped 25” indices started being calculated.

• The Communiqué on the Notification and Registration of Bearer Share Certificates to the Central Securities Depository

With the Communique, it is now required to notify all bearer shares in non-public companies to the Central Securities Depository. For more information on the communique, you may refer to our client alert on the subject: https://www.baseak.com/en/insights/alerts/2021/april/14/provisions-on-bearer-share-certificates-regulated

• Regulation Banning Crypto Assets’ Use in Payments

In the second half of April, the Republic of Turkey Central Bank enacted a regulation banning the use of crypto assets in payment either directly or indirectly and the provision of related services. Payment and electronic money institutions were banned from intermediating fund transfers from and to platforms providing services for buying, selling, depositing, transferring or issuing crypto assets.

• Disclosure deadlines for financial reports were extended by 30 days

CMB extended the final notification deadlines set out under the capital markets legislation regarding the disclosure of interim financial reports for the period between 01.01.2021-31.03.2021 for 30 days for portfolio management companies, investment institutions and businesses having capital markets instruments traded on a stock exchange and/or any other organized market. 

Amendments introduced in May

• Amendments in Communique Regulating Portfolio Management Companies and Principles of Activities of Such Companies

At the end of May, CMB, increased the starting capital to form a portfolio management company to TRY 6,000,000  and updated obligations regarding minimum ¬required capital. 

• Equity Market Procedure was updated

BIST updated the Equity Market Procedure. Updates include imposing a maximum order value limit, excluding companies who recently started being traded on BIST from market evaluations for three months. 

• Resolution Extending Istanbul Settlement And Custody Bank’s (“Takasbank”) Authorities

Republic of Turkey Central Bank granted Takasbank authority of providing cash settlement and security management services in Natural Gas Forward Sales Market transactions.

Amendments introduced in June

• Directives Regulating Precious Metals Intermediary Institutions were updated

BIST updated two directives concerning precious metal intermediary institutions. The updates relate to internal control and supply chain compliance mechanisms.

• Amendments in BIST Money Market Directive

Borsa İstanbul Money Market Directive was updated. The updates relate to procedural rules governing market procedure such as abolishing session breaks, determining the maximum order amount. 

• Guide on Investment Funds was updated, minimum threshold values for individual portfolios and collective investment institutions was announced

CMB announced that the guide on investment funds was updated. The update includes changes in calculating the remaining and the weighted average term for assets included in the fund portfolio. In addition, CMB determined the minimum threshold values for individual portfolios and collective investment institutions. 

• Prospectus update exemption in IPOs was extended

CMB extended the exemption to be able to use a prospectus prepared with last three year’s financials and only annexing the Q1 interim financials until 14 July 2021.