CMB bans short selling on Borsa Istanbul: 'Developments in recent days...'
The Capital Markets Board (CMB) has taken new measures following developments in recent days at Borsa Istanbul AŞ. The Board announced decisions such as banning short selling and facilitating share buybacks by publicly traded companies.
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While the arrest of Ekrem İmamoğlu is being protested in Saraçhane and across the country, the CMB has announced precautionary measures for Borsa Istanbul, which experienced sharp declines last week. The CMB has banned short selling and announced that share buybacks have been facilitated.
The measures taken will be in effect from March 24, 2025, until the end of the session on April 25, 2025. The CMB stated that these decisions were taken to ensure that the capital market operates in a reliable, transparent, and stable manner.
In the statement made by the CMB, the following expressions were used:
'As of March 23, 2025, short selling transactions are prohibited in Borsa Istanbul AŞ equity markets. Share buybacks by publicly traded partnerships have been facilitated. The equity ratio in leveraged capital market transactions will be applied with flexibility.'
DECISIONS VALID FOR 1 MONTH
The CMB emphasized that the decisions taken are necessary to maintain market stability and safeguard the rights of investors. The Board stated that it aims to prevent unusual volatility in the markets.
The full text of the statement made by the CMB is as follows:
'Due to developments in the Borsa Istanbul AŞ markets in recent days, some measures have been taken by our Board. As of March 23, 2025, transactions carried out at Borsa Istanbul AŞ are being continuously monitored by our Board in order to ensure the operation and development of the capital market in a reliable, transparent, efficient, stable, fair, and competitive environment, and to protect the rights and interests of investors. Due to developments in the Borsa Istanbul AŞ markets in recent days, it has become necessary for our Board to take some measures.
For this reason, it has been decided to prohibit short selling transactions in Borsa Istanbul AŞ equity markets, to facilitate share buybacks by publicly traded partnerships, and to apply the equity ratio with flexibility for the duration of leveraged capital market transactions, from 24.03.2025 until the end of the session on 25.04.2025.'