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Legal guides written by Tekin Law Firm:
Equity Capital Markets (ECM) law in Istanbul, Turkey focuses on the legal framework surrounding the issuance, buying, and selling of shares and other equity instruments in the Turkish financial markets. Istanbul is the country’s financial center, home to Borsa Istanbul, the main stock exchange. Turkish ECM activity involves initial public offerings (IPOs), rights issues, secondary offerings, block trades, and private placements. These transactions are regulated to promote market efficiency, transparency, and investor protection. Both domestic and international participants operate under strict rules to ensure fair and orderly trading.
Navigating the ECM environment in Istanbul can be complex due to evolving regulations and multifaceted transaction structures. You may need a lawyer in various situations, such as:
An experienced ECM lawyer can help you navigate legal requirements, mitigate risk, and facilitate smooth completion of complex transactions.
Equity Capital Markets in Istanbul are primarily regulated by the Turkish Capital Markets Law No. 6362 and supervised by the Capital Markets Board (CMB). Key local law features include:
These regulations are regularly updated to align with international best practices and EU harmonization efforts.
An IPO is the process by which a private company offers its shares to the public for the first time on Borsa Istanbul. It requires CMB approval and the preparation of a prospectus detailing the company’s financial condition and risks.
The Capital Markets Board (CMB) is the main regulator for ECM transactions in Turkey, enforcing rules and overseeing market activities.
A company must prepare a prospectus, audited financial statements, board resolutions, and various forms required by CMB and Borsa Istanbul.
Yes, Turkish Capital Markets Law strictly prohibits insider trading and mandates public disclosure of inside information to maintain market integrity.
Generally, there are no significant restrictions on foreign investors trading Turkish equities, but some sectors may have limitations, and anti-money laundering checks apply.
Due diligence ensures that all material information about a company is disclosed accurately, helping prevent misstatements and potential liabilities in ECM transactions.
Public companies must regularly disclose financial results, significant events, and changes in shareholding to both CMB and Borsa Istanbul, often within strict timelines.
Violations may result in fines, suspension of trading, liability for damages, or criminal sanctions for responsible individuals.
A secondary offering involves the sale of additional shares by an already listed company, unlike an IPO which marks a company’s initial listing on the stock exchange.
Acquisition of shares that give control over a listed company often triggers a legal obligation to make a tender offer to remaining shareholders, ensuring their equal treatment.
Several organizations and government bodies provide further guidance and support on ECM matters in Istanbul:
Visiting their official websites or contacting their helpdesks can give you up-to-date regulations, application forms, and further information on ECM procedures.
If you are considering an equity capital markets transaction or facing regulatory or compliance issues in Istanbul, it is crucial to seek qualified legal advice. Start by gathering all relevant documents related to your intended activity. Identify law firms or legal consultants with strong ECM experience in Turkey. Arrange an initial consultation to discuss your needs, objectives, and any deadlines. Being proactive ensures compliance with local regulations, minimizes risk, and helps you achieve a successful transaction or resolution. For more complex matters, consider continuous legal support to stay updated on the frequent changes in Turkish ECM regulations.
