Turkey: Market Abuse Actions In Accordance With Capital Markets Law


The Capital Markets Board adopted the Communiqué on Market Abuse (VI-1.104.1) ("Communiqué") in order to determine the acts and transactions that result in the distortion of the reliability, transparency, and stability of stock markets and other organized markets, which cannot be justified through reasonable economic or financial grounds, and sanctions upon those persons who do such acts and transactions. The Communiqué was published in the Official Gazette on 21.01.2014, and came into effect the same day. The Communiqué sets forth market abuse actions, and actions that are not deemed as market abuse.

Market Abuse with respect to Inside or Periodic Information

Persons that have inside or periodic information prior to the public disclosure of such information pursuant to the capital markets law, shall keep such information confidential until the disclosure thereof. The disclosure of such information by the persons in question before the public disclosure, and the execution of capital markets transactions based on direct or indirect knowledge of such information shall be deemed as market abuse.

Transactions regarding relevant capital market instruments by persons having inside or periodic information, or by the spouse, children, or cohabitants of such persons during the period starting from the day after the end of the accounting period regarding financial statements and reports of issuers, or independent audit reports, until the date of disclosure of those statements and reports to the public in accordance with legislation, is considered and treated as market abuse.

Transactions regarding relevant capital market instruments by persons having inside or periodic information or by the spouse, children, or cohabitants of such persons, during the period starting from the date of the finalization of inside or periodic information until the date of disclosure of such information to the public in accordance with legislation, is considered and treated as market abuse.

Market Abuse Actions with respect to the Orders or Transactions

Actions and acts by persons acting alone, or together, through stock markets, or in other organized markets, which may be deemed as material or effective, taking into account the determined value of the capital market instruments, price variations, transaction volumes, transaction amounts, transaction rates, order amounts, order rates, order cancellation amounts, order cancellation rates or order execution rates, distorting the reliability, transparency and stability of stock markets and other organized markets, or creating wrong or false impressions regarding prices, price variations, supply and demand of capital market instruments, or preventing competitive environments of the market, or formation of fair or correct prices:

  1. by selling and purchasing, executing account activities, giving orders, or cancelling or changing orders; or
  2. transmitting orders at different price levels; or
  3. by giving reverse orders within a period of less than one minute, such as a selling order at a price equal to or lower than the best purchase price in the market, or a buying order at a price equal to or higher than the best sale price; or
  4. executing transactions with itself or reciprocal transactions; or
  5. by executing transactions with the purpose of affecting opening or closing prices;
  6. executing transactions with the purpose of affecting the end-of-day or end-of-maturity settlement prices; or
  7. executing transactions with the purpose of increasing, decreasing, or maintaining the price; or
  8. exceeding the position limits provided for all accounts associated with a registry, or on a market basis in futures and options markets; or
  9. executing transactions that are similar to transactions executed in the relevant underlying asset market in futures and options markets

are considered and treated as market abuse actions.

Market Abuse through Communication or Correspondence

To indicate false, wrong or misleading information, spread rumors, inform, make material disclosures, make comments, or prepare reports that can affect prices, values of capital market instruments, or the decisions of investors, or which are capable to effect market indicators that may affect relevant indicators, is considered as market abuse. Furthermore, the execution of such action by persons who know, or should have known, that such actions are false, wrong or misleading, is considered as market abuse (For instance: board of director's members, managers, specialists, etc.).

Non-disclosure of information that is required to be disclosed pursuant to the Regulations by the Capital Markets Board regarding material disclosure, and which may affect the prices, values of capital market instruments, or the decisions of investors are also considered as market abuse.

In addition, selling a capital markets instrument despite giving a recommendation to purchase or hold, or purchasing a capital markets instrument despite giving a recommendation to sell, after making comments, or giving advice about such capital market instruments through newspapers, television, internet, or similar other media instruments, until the date of revising such comments or advice, or in any event, within 5 business days thereafter, is deemed as market abuse.

Other Market Abuse Actions

Prior to the transmitting of orders to investment companies, relevant stock market, or other organized markets that are capable of affecting the price or value of capital market instruments, to give orders regarding the capital market instrument in question or other relevant capital market instruments with advance knowledge on order of the investors, or to change or cancel such orders, or to transfer the information on the orders in question to third parties are considered as market abuses.

Following transactions in stock markets or other organized markets that are absent a power of attorney issued by a Notary Public, are considered as market abuse:

  1. to transmit orders, execute transactions, or make transfers by using the account of another person; or
  2. to allow other persons to transmit orders, execute transactions, or make transfers by allowing others to use his/her account.

In the event that the shareholders having control plans to sell their shares in the stock market, which exceed 10% of its share capital, or 50% of the value of their shares on de facto circulation in any twelve month (12) period, the relevant shareholders shall issue an information form in accordance with the legislation, and the form shall be approved by the Capital Markets Board prior to the sale. The form approved by the Capital Markets Board shall be announced through a Public Disclosure Platform. Non-compliance with aforementioned Article 27 of the Communiqué on Shares (VII-128.1) and the principal decision of the Capital Markets Board shall be deemed as market abuse.

If a person who is prohibited from concluding transactions by Capital Markets Board trades in stock markets, or in other organized markets, by using his/her own account, or the account of other persons during the prohibition period, the person in question shall be deemed to have committed market abuse.

Actions Not Considered As Market Abuse

The following transactions are not considered as market abuse actions:

  1. Transactions in order to ensure the financial stability or implementation of the policies on money, rates of exchange, and management of public debts by the Central Bank of the Republic of Turkey, and other authorized administrative authorities, or those persons who act on their behalf,
  2. Allocation of shares regarding repurchase programs, share acquisition programs to personnel, or other allocations of shares to the personnel of the issuer or subsidiaries under the regulations of the Capital Markets Board,
  3. The sale or purchase of capital markets instruments, or giving orders, or cancellation of orders in order to maintain the market price of such instruments in a determined period, provided that such transactions are concluded in conformity with the provisions of Capital Markets Law No. 6362 regarding the transactions on price stability and market making,
  4. The professional activities of journalists conducted in accordance with journalism ethics and standards provided that;

    1. an unfair advantage is not directly or indirectly obtained through the publishing of news or comments; or
    2. news or comments are not published in agreement with, or under the guidance of, persons who have committed abuses of information or market manipulation crimes; or
    3. the relevant capital markets instrument are not traded with, or such information is not disclosed to, third parties before publishing the news or comments.


The Communiqué of the Capital Markets Board provided for the acts and actions distorting the reliable, open, and stable functioning of stock markets and other organized markets, and the Communiqué defines actions that affect the price of capital market instruments, the decisions of investors, distorting the competition, and the fair and correct functioning of the transactions.

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.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions