Listing on the Stock Exchange in Istanbul
Listing on the Stock Exchange in IstanbulUpdated on Monday 18th April 2016
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The stock exchange entity in Turkey is Borsa Istanbul and it includes the Istanbul Stock Exchange, the Istanbul Gold Exchange and the Derivatives Exchange of Turkey. Borsa Istanbul was created recently, in 2013, and its main shareholders are the Turkish government (49%) and IMKB (41%) and for the future it was estimated that the part of the Turkish government will be sold.
The activity of the Borsa Istanbul is regulated by the Capital Markets Board Law no. 6362 that came into force one year before the new stock exchange began to operate. All the exchanges on the capital markets in Turkey are made through a single entity – Borsa Istanbul. According to the law, all the transactions are made freely, in a transparent and secure manner, respecting the principles of competitiveness and free trade. The entity is represented by the CEO who is also the chairman of the board.
Over 300 companies are listed nowadays on the Borsa Istanbul and the number is expected to rise in the future, as the Turkish economy is growing.
The trading hours are presented on the website of Borsa Istanbul – the first session begins in the working days at 9.15 a.m. and it ends at 12.30 a.m.; the second session (for equity market) – between 14 and 17.30 p.m.
Two markets for stocks
In order to list a company on the Borsa Istanbul, there are some conditions to be respected. For trading stocks, there are two markets – the Equity Market and the Emerging Companies Market (ECM), both at Borsa Istanbul. On the Equity Market are accepted the stocks of the companies that fulfill all the conditions imposed. The companies that can’t fulfill all the requirements and that offer real reasons for a future development and growth have the possibility to offer their stocks to be traded on the ECM.
The advantages of trading stocks on Borsa Istanbul are the liquidity of the company shares and financial opportunities for the companies. The companies listed on the stock exchange in Turkey have a better image for obtaining loans, are easily recognized and they can be easily opened to international markets and foreign investors.
If you need to list your company on Borsa Istanbul and you need legal advice and consultancy, you can contact our law firm in Turkey. Our Turkish attorneys will help you list your firm or open a new one.