Drafting and enactment of a new Capital Market Law which would
address the needs of Turkish Capital Markets and which would be in
compliance with EU Directives has long been in the agenda of the
capital market governors. However, as the drafting and codification
of a completely new law is a time consuming process, it was
preferred to make limited amendments to the currently applicable
capital markets law (the "CML") with a
view to meet the urgent needs of Turkish Capital Markets.
Below is a brief highlight of the notable aspects of the recent
amendments reflected into the CML:
Leveraged trading of foreign exchange, commodities, precious
metals or other assets to be determined by the Capital Markets
Board of Turkey (the "CMB"),
intermediation to such type of leveraged trading and other services
provided in connection with those transactions are defined as
capital market activities. The new definition includes highly
popular leveraged foreign exchange and commodities trading under
the supervision and surveillance of the CMB and provides a legal
basis for the sub-regulations to be issued in the upcoming
Injunctions, seizures and any other similar administrative and
judicial precautions with respect to dematerialized securities
shall be executed by the members (i.e. banks and brokerage firms)
of the Central Registry Agency by opening sub-accounts linked with
investor accounts. This Amendment is a clear expression of the
current practice and is expected to abolish the legal uncertainties
raised in connection with the dematerialization of government
The Amendment sets the date 31.12.2012 as a deadline for the
delivery of stock certificates representing shares of ISE traded
companies and provides that the title to those shares will be
transferred to the relevant ISE traded companies automatically in
case those certificates are not delivered to the intermediaries
appointed by the same. The Amendment also requires ISE traded
companies to dispose those shares within a period of three months
as from the above mentioned deadline. This new provision is
inserted into the CML with the intention to finalize the
dematerialization process of shares of ISE traded companies. In
this respect, investors who have stock certificates of ISE traded
companies and who would like to protect their ownership rights over
the shares represented by those certificates shall be careful not
to miss the above mentioned deadline.
As per the Amendment, headquarters of the CMB shall be moved to
İstanbul within a period of two years, which if necessary,
can be extended by the Council of Ministers. The relocation of the
CMB headquarters is considered as part of a government sponsored
project which is expected to position Istanbul as a regional
financial center. In addition to the above, the Amendment includes
certain other provisions addressing the organizational and
budgetary needs of the CMB.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Under Regulation (EU) No. 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories ("EMIR")...
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