Recent Developments
With the announcement made pursuant to the resolution dated 18 April 2025 and numbered 24/733 (“Announcement“), the Capital Markets Board (“CMB“) extended the short selling ban, certain facilities provided for share buybacks of listed companies and the flexibility of the maintenance margin ratio in transactions on credit until the end of the session on 30 May 2025. The CMB had introduced these provisions with the announcement it made pursuant to the resolution dated 23 March 2025 and numbered 18/574. You can refer to our legal bulletin regarding these provisions here.
What’s New?
Pursuant to the Announcement, the following will apply until the end of the session on 30 May 2025:
- Short selling will not be allowed in Borsa Istanbul A.Ş. equity markets.
- Rules on the upper limit of the price order for buyback, rules stipulating that buyback orders cannot be given at certain time periods during the day and that no private order can be given within the buyback program, and the rule stipulating that the total value of the shares purchased under the buyback program cannot exceed the total amount of items that can be subject to dividend distribution under the CMB regulations will not apply.
- Brokerage firms can apply a minimum maintenance margin ratio of 20% for transactions on credit instead of the usual 35%.
