Announcement on Measures Against Insider Trading and Market Manipulation

“Communiqué Amending the Communiqué on Measures to be Taken  Insider Trading and Manipulation Investigations (V-101.1.a)” (the “Communiqué”) has been published in the Offical Gazette dated 19 September 2023 and numbered 32314 by the Capital Markets Board (the “CMB”).

In the Communiqué, it has been stipulated that capital market instruments subject to trading bans cannot be sold on stock exchanges for any reason during the period of the trading ban, except for the specified  exceptional circumstances.

As per the Communiqué, the consequences of failure to fulfill the clearing and/or collateral replenishment obligations related to the existing open positions in the futures and options market of persons subject to trading bans have been specified. Accordingly, if stipulated in contracts with customers, investment institutions will be able to collect the capital market instruments of these individuals subject to the trading ban by selling them on or off the stock exchange or by transferring them.

As per this Communiqué, it has been regulated that the documents and records specified in regulated sales will be sent to the Central Securities Depository ("CSD"), discrepancies that may arise between investment institutions and customers regarding matters for which CSD is responsible and sales and/or transfer transactions are subject to general provisions.

As it is understood from the amendments, the CMB aims to conduct stricter controls in capital markets and to increase the confidence of investors.

The Communiqué has entered the force on the date of its publication, effective as of 19 September 2023, and you may find the detailed provisions in the Official Gazette.