Turkey bans short selling
27 March Turkey
Image: muratart/stock.adobe.com
The Capital Markets Board (CMB) of T眉rkiye has imposed a ban on short selling across all stocks, in response to a decline in the benchmark index following the arrest of an opposition leader.
In the announcement, the board said that it is necessary to take certain measures due to recent developments in the Borsa Istanbul markets.
The new measures, which will be in place until 25 April, allow companies to repurchase shares above the last market close and reduce the minimum equity capital requirement for margin trading from 35 per cent to 20 per cent.
The CMB stated that these actions aim to ensure a reliable, transparent, efficient, stable, fair, and competitive environment for the functioning and development of capital markets while protecting the rights and interests of investors.
This follows the arrest of Istanbul Mayor Ekrem Imamoglu, a rival to President Recep Tayyip Erdogan, on 23 March.
Imamoglu鈥檚 detention has sparked financial turmoil, with investors selling Turkish assets over rule of law concerns.
The Turkish central bank (TCMB) has also raised its main interest rate from 35 per cent to 40 per cent to tackle soaring inflation in the country.
The CMB lifted its ban on short selling on 2 January, after it had been in place for nearly two years, from February 2023.
In the announcement, the board said that it is necessary to take certain measures due to recent developments in the Borsa Istanbul markets.
The new measures, which will be in place until 25 April, allow companies to repurchase shares above the last market close and reduce the minimum equity capital requirement for margin trading from 35 per cent to 20 per cent.
The CMB stated that these actions aim to ensure a reliable, transparent, efficient, stable, fair, and competitive environment for the functioning and development of capital markets while protecting the rights and interests of investors.
This follows the arrest of Istanbul Mayor Ekrem Imamoglu, a rival to President Recep Tayyip Erdogan, on 23 March.
Imamoglu鈥檚 detention has sparked financial turmoil, with investors selling Turkish assets over rule of law concerns.
The Turkish central bank (TCMB) has also raised its main interest rate from 35 per cent to 40 per cent to tackle soaring inflation in the country.
The CMB lifted its ban on short selling on 2 January, after it had been in place for nearly two years, from February 2023.
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