The Capital Markets Board (CMB) has issued a statement regarding the provisions on settlement finality and share blocking in the draft law currently being discussed in the Grand National Assembly of Turkey. The Board stated that the regulation will not affect completed settlement transactions.
In the CMB's announcement dated October 22, it was recalled that, in accordance with Article 79 of the Capital Markets Law, settlement and payment transactions regarding capital market instruments cannot be reversed or canceled, even if the relevant institutions cease operations or enter a liquidation process.
The Board emphasized that this provision does not mean that all instructions given through the Turkey Electronic Fund Trading Platform (TEFAS) are finalized regardless of their stage. The statement noted that TEFAS is a platform used for purchasing mutual fund participation shares from the fund founder and returning them to the founder.
According to the CMB, the fact that investors with share blocking sub-account (PBLK) status place a sell order or that such a record exists in the system does not in itself mean that the settlement has begun or been completed. For a settlement to be considered complete, the cash must be transferred to the investor's account and the record of fund participation share ownership must be removed following the instruction.
The statement indicated that individuals with a share blocking record are included among the total of 455 thousand 758 fund share owners and do not constitute a separate group. It was noted that including instructions for which settlement has not yet been completed in the scope of liquidation will contribute to the fair distribution of fund assets among investors.
The CMB stated that the draft law only covers instructions for which the settlement process has not been completed, and that these instructions will be evaluated on equal terms with other participation share owners based on the amounts to be obtained as a result of the liquidation. The Board reported that the purpose of the regulation is to clarify the legal status of fund share owners and their rights within the scope of liquidation.
News Source: 12punto
