New capital markets code takes effect today

ISTANBUL - Hürriyet Daily News

Traders are seen at the İMKB, which will merge with the Istanbul’s gold bourse. AA photo

Turkey’s new Capital Markets Board (SPK) Code, which was published on the Official Gazette yesterday, brings significant changes to the market, including the board’s relocation in Istanbul and the transformation of the Istanbul Stock Exchange (İMKB) into a joint stock company along with a shift in the top seat.

The code will come into force today.

“This code forms the legal frame, but it authorizes the Capital Markets Board to deal with most of the issues with secondary codes that raise the importance of completing succeeding regulations,” said Atilla Köksal, the president of Capital Market Intermediary Institutions Association (TSPAKB), Anatolia news agency reported. Expressing his appreciation with the law during his previous statements to BloombergHT, he also said these regulations will increase the inclusion of small investors into the capital market by assuring them.

The reformed SPK, with 920 employees, will be located in Istanbul, as one of the major steps within the government plans of making Istanbul a regional and global financial center.

With the new law, the İMKB will merge with the Istanbul Gold Exchange and become a joint stock company under Borsa Istanbul within six months as soon as the regulations and principles of the new company are prepared by the SPK.

Other changes
Under the new law, disclosure requirements for companies expanded along the remodeling of definitions of insider trading and market manipulation as in the European Union Directives.

Prospectuses become more important during the public offering process as permissions from the SPK instead of the former registration system.

Also, sukuks, the so-called non-interest Islamic bonds based on leasing certificates, earns a legal definition and regulation for the first time.

As the law goes in effect, the current SPK president Vedat Akgiray’s term will be over. The board has tabled a motion for the appointment of board member Vahdettin Ertaş as the new president, a motion due to await the approval of President Abdullah Gül.