Capital Markets Board of Turkey published decisions in order to eliminate the negative impact of COVID-19
Due to the COVID-19 epidemic, as well as Turkey’s financial market almost all financial markets around the world have been affected negatively. In line with the requests, Capital Markets Board of Turkey (“the CMB”) have resolved decisions during a meeting dated 19.03.2020 in order to eliminate the negative effect with the today’s conditions. The decisions were published and announced with the CMB Bulletin dated 23.03.2020 and numbered 2020/19 (“the CMB Bulletin”).
Please find our summarized explanations on the CMB Bulletin regarding the measures taken in response to COVID-19 as follows:
- Equity protection rate will be completed to 35% regarding margin trades
It is decided that the equity protection rate for margin trades will be at least 35% and if the collateral rate falls below, the obligation to complete such rate to 50% will be applied as 35% until further announcement. Also, the notification requirement will not be applied for when the obligation of customers to complete the equity and/or clearing of the equity regulated in article 35 of the CMB Communiqué on Margin Trading, Short Sales and Lending and Borrowing of Securities is not fulfilled.
- It is reminded that previous press announcement regarding the buy-back are still in force
According to the previous press announcements of the CMB in 2016, publicly held companies are enabled to buy-back the publicly traded shares without limitation. A board of directors decision should be disclosed to the public, including the purpose of repurchase, the maximum number of shares that can be subject to repurchase, and the maximum amount of funds that can be allocated for this business prior to repurchase. Publicly held corporations that already has a buy-back program may benefit from this exemption with a board of directors decision.
- Reporting dates regarding the financial reports are revised
According to the decision taken regarding the final notification periods for the annual or monthly interim period determined in the capital market legislation:
- Reporting of the portfolio management companies and brokerage houses for the financial period of 01.01.2019-31.12.2019 (“2019 financial period”) and financial period of 01.01.2020- 31.03.2020 (“quarter interim period”) will be made until the end of the first month following the reporting deadlines determined under capital markets legislation,
- Reporting of the investment funds (including private equity investment funds, real estate investment funds and exchange traded funds) for the 2019 financial period and announcement date of the pension funds regarding 2019 financial period shall be made until 30.04.2020,
- Announcement of the corporations whose capital market instruments are traded in a stock market and/or organized markets regarding financial reports for quarter interim period will be done within the 30 additional days following the reporting deadlines determined under the relevant legislation.
- Reporting of the corporations which have a special accounting period and have capital market instruments traded in a stock market and/or organized markets regarding the financial reports which are not yet disclosed to the public with the definitive reporting period of March or April , can be made within the 30 additional days following the reporting deadlines determined under the relevant legislation.
- Time periods regulated under Article 25 Paragraph 1 and 2 of the Regulation on Investor Compensation Center regarding the announcement of prescription are extended for one month.
- Receiving customer orders via electronic devices is enabled
Until further announcement of CMB, within the scope of the customer consent and on condition that ensuring authentication mechanism for possible conflicts regarding the customer orders and informing customers regarding the transactions, it is possible for the staff with remote working access to receive customer orders via mobile applications (e.g., whatsapp) or allocated email addresses .
