Borsa Istanbul (“BIST“) issued an announcement (“Announcement“) on September 17, 2020 about changes to the market structure of the Borsa Istanbul Equity Market, which will create market liquidity. These changes will be reflected on the Equity Market Directive and come into force on October 1, 2020.
What Does the Announcement Say?
- The new market structure will abolish the existing classifications of the BIST Star Group 1 – Group 2, and BIST Main Group 1 – Group 2.
- The BIST Star Group 1 and BIST Star Group 2 will merge into a single group, the BIST Star.
- The BIST Main will replace the BIST Main Group 1.
- The BIST Submarket will replace BIST Main Group 2. Moreover, the Emerging Companies Market will become a part of the BIST Submarket. Accordingly, shares trading in the Emerging Companies Market will be quoted and traded on the BIST Submarket beginning from October 1, 2020.
Consequently, the Procedure Concerning Market Advice for the Emerging Companies Market will be abolished.
- Pursuant to BIST’s Listing Directive, the minimum market cap of shares to be offered to the public, which is one of the mandatory requirements for quotation, will increase to TRY 200 million from TRY 150 million for the BIST Star. The BIST Main’s requirement of TRY 50 million will not change. This requirement will be set at TRY 20 million for the BIST Submarket.
The changes aim to diminish market disintegration in the BIST, thus increasing market liquidity and informational efficiency.