The Capital Markets Board (“CMB”) has rendered measures to limit the negative effects of COVID-19 pandemic in the markets with the CMB Bulletin (“Bulletin”) dated 23 March 2020 and numbered 2020/19:
- Submission of Financial Reports
Additional periods have been provided for announcement of final reporting periods determined by the capital market legislation are extended as follows:
- An additional period of 30 days has been given to the companies having capital market instruments that are traded in the stock market or other organized markets, and public companies having a special accounting period will also benefit from this additional period.
- Portfolio management companies and intermediary institutions has been granted an extension to an additional period until the end of the month following the reporting period to submit the financial statements for the 2019 fiscal year and the quarterly interim period of 2020.
- Financial reports of investment funds for the fiscal year 2019 and annual reports of pension funds may be submitted until 30 April 2020.
- Associations with capital market instruments that are not traded in a stock exchange or other organized markets will receive an additional extension until the end of the month following the submission periods for the 2019 fiscal period.
- Application Through Registered Electronic Mail
It has been clarified that all notifications and applications of public companies and investment institutions to the CMB can be made via the registered e-mail address of the CMB.
- Remote Access Work
Personnel of investment institutions and portfolio management companies are enabled to work part-time, alternately, remotely or within the framework of other similar procedures determined by the investment institutions.
The Investment institutions and portfolio management companies will be able to take action on customer orders through mobile applications (such as Whatsapp) or e-mail of their remote working personnel. The investment institutions are required to provide reasonable recording mechanisms allowing the keeping of the orders and provide necessary information to the customers. Investment institutions and portfolio management companies are also required to announce changes in their order transmission through their own websites.
- Determination of Equity Protection Rate in Credit Transactions
Equity protection rate will be applied as 35% in credit transactions, instead of the former requirement to complete the securitization rate to 50%. Furthermore, no notification will be made regarding the customers’ failure of fulfilling their obligation of completing the equity and/or exchange requirements stipulated under Article 35 of Communiqué on Credit Purchase, Short Sale and Borrowing and Lending Transactions of Capital Market Instruments.
- Confirmation of Past Regulations of CMB Regarding Share Buy-Back
The CMB through its decisions in 2016 allowed public companies to to buy-back their shares from the stock exchange without any restrictions. The CMB has reminded that, public companies will be able to buy-back their shares from the market based on their existing buy-back plan and other public companies may benefit from this option by implementing a board resolution.
Please see this link for the full text of the Bulletin (only available in Turkish).