Turkish capital markets law 2024 is designed for safety of capital markets with the aim of a more robust, reliable and well-functioning financial markets. Turkish capital markets law 2024 consists of legislation, communiques and other related documents.
This article will provide a useful outline of Turkish capital markets law and underlying challenges for the enforcement of relevant procedures. It is beyond doubt that capital markets are fundamental to bring foreign and national investors together. It is also seen as one of the primary investment instruments for most jurisdictions including Turkey.
Is Türkiye safe for investment? If you are curious about the answer to the question, you can read our article.
For our work and all legal services on the matter of capital markets, please click our Practice Areas, titled Investment
What is the capital market in simple words?
The word “capital markets” is used to imply financial markets to buy or sell bonds, stocks, currencies or other financial assets. Capital markets are of great importance in bringing entrepreneurs and investors.
For our work and all legal services on the matter of capital markets, please click our Practice Areas, titled Capital Markets
What is the Turkish capital markets law 2024?
Turkish capital markets law covers the regulation of a broad range of capital markets instruments including:
-public offerings and sales,
-initial public offerings.
Turkish capital markets law is articulated to regulate, supervise and monitor the functioning capital markets in order to protect investors and individuals from illegal practices.
What is the regulatory structure of the financial system under Turkish capital markets law 2024?
It is essential to underline at the outset that the Turkish financial markets regulatory regime is fragmented by different institutions. Having said that, the primary role is granted to the Capital Markets Board of Turkey. Besides, the Banking Regulation and Supervision Agency has crucial mandates in the banking sector. Two competent national institutions work in close collaboration for banking and capital markets. The Turkish Capital Markets Association has another important organization in Turkey.
For our work and all legal services on the matter of banking sector, please click our Practice Areas, titled Banking and Finance Law
What is the capital markets regulation in Turkey?
The Capital Market Law (Numbered 6362) has been centered at the regulation and supervision of the capital markets. The Law sets a framework for capital markets into line with the EU integration process of Turkey. Additionally the Capital Markets Board also plays a crucial role in formulating effective standards and principles applicable to the capital markets in Turkey.
What is news in the Turkish capital markets law?
A new decision dated December 29, 2023 has been published in the Capital Markets Board Bulletin (2023/82). Monetary thresholds have been revised by the Board for initial public offerings.
In this context, the minimum amount for the registered capital system cannot be lower than TRY 100.000.000.Additionally, for companies whose shares will be offered to the public for the first time, the total assets cannot be lower than TRY 1.500.000.000. In terms of net sales revenue, it cannot be lower than TRY 750.000.000 in its 2023 year-end financial statement.
Take a look at our article for more discussions: Increase in Monetary Threshold of Initial Public Offerings 2024 for Turkey
Having regard to the aforementioned analysis, it is important to note that the regulation, the supervision and the advancement of capital markets is the core objective of Turkish capital markets law 2024. Transparency, efficiency and fairness present the most significant principles articulated by Turkish capital markets law. A sound legal guidance through a robust capital markets consultancy must be seen as a key component for successful outcomes.