Turkish financial watchdog cancels stock market abuse decision

ISTANBUL - Reuters

Turkey’s capital markets regulator decided on July 15 to cancel a partial suspension of a directive related to insider trading, saying “speculation and negative perceptions” of the move would have prevented the decision having its desired effect.

The Capital Markets Board said on July 13 that until the end of August Borsa Istanbul share purchases by people party to a company’s internal information, or by those close to them, would not be subject to a stock market abuse directive.

It did not give a reason for the move in the July 13 statement but the board said on July 15 the decision was taken in response to market demand and was aimed at supporting companies’ share buyback programs and investors.

“The decision was taken to cancel this ruling... given the speculation and negative perceptions which arose after it was announced,” the statement said after a board meeting on July 15.

“It was assessed that this would prevent the emergence of the desired benefits to the market of the decision,” it added.

The statement said the decision only referred to transactions that were not a crime. Insider trading is a crime under Turkey’s capital markets law and the decision does not amount to any change in this, it added.