New Restriction on Off-Exchange Share Sales from the Capital Markets Board

The Capital Markets Board has adopted a new principle decision regarding share sale transactions to be conducted off-exchange, introducing various limitations and approval requirements based on the actual free-float share ratios.

Scope of the New Principle Decision

According to the announcement published by the Board Decision Body of the Capital Markets Board, a new regulation has been enacted based on the actual free-float share ratios for share sales to be made off-exchange. In this context, Board approval has been made mandatory for transactions exceeding certain ratios.

Limits Based on Free-Float Ratio

In partnerships where the actual free-float share ratio is above 50 percent, no more than 2 percent of the capital or voting rights can be sold off-exchange within a 12-month period. For partnerships with a ratio of 50 percent and below, this limit has been set at 4 percent.

Share Sale Information Form Requirement

When it is desired to transfer shares in amounts exceeding the specified ratios, it has been made mandatory to draw up a share sale information form prior to the transfer and submit this form to the Board for approval. Conversion into traded-on-exchange status and transfers cannot be made without obtaining approval.

Liability and Exemptions

The transferring shareholder and the investment institutions acting as intermediaries for the transfer will be responsible for compliance with the introduced rules. BIST 30 Index companies and certain partnerships under the control of public institutions have been exempted from these provisions.