Removal Of Short Selling Ban For BIST 50 Index Shares
A. INTRODUCTION
According to the decision of the Capital Markets Board of Turkey (“CMB”) dated 6 February 2023 (“Decision”) published in the Capital Markets Board Bulletin dated 6 February 2023 and numbered 2023/7, it was decided to ban short selling transactions in Borsa Istanbul A.Ş. (“Borsa Istanbul”) share markets.
In accordance with the CMB's decision dated 5 December 2024 and numbered 62/1863 (“Amendment Decision”) published in the CMB’s bulletin dated 5 December 2024 and numbered 2024/55, it has been decided to lift the ban on short selling as of 2 January 2025, limited to the share markets in the BIST 50 index announced by Borsa Istanbul.
B. SIGNIFICANT REGULATIONS IN THE AMENDMENT DECISION
In response to the adverse effects of the earthquake centred in Kahramanmaraş on February 6, 2023, which impacted 10 provinces, the CMB had temporarily imposed the following measures in Borsa İstanbul equity markets as of February 6, 2023:
(i) Short selling transactions are prohibited, and positions made during the day without pressing the short selling button and closed on the same day are also considered within the scope of the said prohibition,
(ii) The requirement for investors to hold shares in their accounts before selling them,
(iii) The requirement that the sale of securities be carried out through the investment institution where the securities are held,
was decided, investors and investment institutions were informed accordingly.
With the Amendment Decision;
(i) The ban on short selling in Borsa Istanbul equity markets is lifted as of 2 January 2025, limited to the equity markets included in the BIST 50 index announced by Borsa Istanbul,
(ii) In short selling transactions where the ban has been lifted, investors and investment institutions will be informed that, in accordance with Series V, No. 65 of the Communiqué on Margin Trading, Short Selling, Lending, and Borrowing of Capital Market Instruments, it is mandatory to press the short selling button for intraday positions that are sold without being owned and closed on the same day.
C. CONCLUSION
Pursuant to the Amendment Decision, the short selling ban that has been in effect since February 6, 2023, will be lifted as of January 2, 2025, but only for the equity markets within the BIST 50 index.
For further information and support, please contact us at info@lbfpartners.com.
LBF Partners Law Firm
According to the decision of the Capital Markets Board of Turkey (“CMB”) dated 6 February 2023 (“Decision”) published in the Capital Markets Board Bulletin dated 6 February 2023 and numbered 2023/7, it was decided to ban short selling transactions in Borsa Istanbul A.Ş. (“Borsa Istanbul”) share markets.
In accordance with the CMB's decision dated 5 December 2024 and numbered 62/1863 (“Amendment Decision”) published in the CMB’s bulletin dated 5 December 2024 and numbered 2024/55, it has been decided to lift the ban on short selling as of 2 January 2025, limited to the share markets in the BIST 50 index announced by Borsa Istanbul.
B. SIGNIFICANT REGULATIONS IN THE AMENDMENT DECISION
In response to the adverse effects of the earthquake centred in Kahramanmaraş on February 6, 2023, which impacted 10 provinces, the CMB had temporarily imposed the following measures in Borsa İstanbul equity markets as of February 6, 2023:
(i) Short selling transactions are prohibited, and positions made during the day without pressing the short selling button and closed on the same day are also considered within the scope of the said prohibition,
(ii) The requirement for investors to hold shares in their accounts before selling them,
(iii) The requirement that the sale of securities be carried out through the investment institution where the securities are held,
was decided, investors and investment institutions were informed accordingly.
With the Amendment Decision;
(i) The ban on short selling in Borsa Istanbul equity markets is lifted as of 2 January 2025, limited to the equity markets included in the BIST 50 index announced by Borsa Istanbul,
(ii) In short selling transactions where the ban has been lifted, investors and investment institutions will be informed that, in accordance with Series V, No. 65 of the Communiqué on Margin Trading, Short Selling, Lending, and Borrowing of Capital Market Instruments, it is mandatory to press the short selling button for intraday positions that are sold without being owned and closed on the same day.
C. CONCLUSION
Pursuant to the Amendment Decision, the short selling ban that has been in effect since February 6, 2023, will be lifted as of January 2, 2025, but only for the equity markets within the BIST 50 index.
For further information and support, please contact us at info@lbfpartners.com.
LBF Partners Law Firm
e.copur@lbfpartners.com
