Market czar accused of violating regulation

ISTANBUL - Hürriyet Daily News

Akgiray, head of Turkey’s Capital Markets Board gestures during a press meeting in Istanbul. AA Photo

Capital Market’s Board (SPK) Chairman Vedat Akgiray has violated regulation by transferring his Bimeks shares to his brothers one week before assuming his role at the regulatory body on March 13, 2009, according to daily Radikal.

According to the SPK regulations, employees are restricted from selling or transferring their stocks to immediate family and second and third degree relatives.

Legal experts claimed the transfer’s taking place a week before Akgiray assumed his post does not make it acceptable since he knew about his appointment, Radikal reported.

The Justice Ministry’s Turkish Trade Law’s Commission Head Ünal Tekinalp said Akgiray should withdraw his candidacy. “The law is very clear, the chairman and members cannot transfer their shares to second or third degree relatives before assuming their posts,” Tekinalp said.

SPK officials, however, argue nothing illegal occurred and Akgiray had relinquished all of his shares before becoming SPK chairman.

“As the board chairman possessed no shares [in Bimeks] at the time he was appointed, section 20 of the SPK law was not violated and contradicting statements are obviously unfounded, unfair and unlawful,” an SPK statement said.

“There is nothing illegal here. It has been two and a half years and this is neither a current or newsworthy topic,” said Aydın Kebapçı, head of corporate relations for SPK, in an interview yesterday.