The Capital Markets Board (CMB) announced measures to minimize the negative impact of the earthquake on financial markets and to prevent possible investor grievances.
The statement made by the CMB is as follows;
"1. Announcement Made in Accordance with the Decision of the Decision-Making Body of the Board dated 14/02/2023 and numbered 9/176:
In order to minimize the negative impact of the earthquake on the financial markets and to prevent possible investor grievances in the difficult times experienced by our country due to the earthquakes that have the epicenter in Kahramanmaraş on 06.02.2023 and affected Adana, Adıyaman, Diyarbakır, Gaziantep, Hatay, Kahramanmaraş, Kilis, Malatya, Osmaniye and Şanlıurfa (Earthquake Region);
"REASONABLE LEVEL" RECOMMENDATION IN INTEREST RATES TO BE APPLIED
1) a) by 10.04.2023; the maximum loan interest rate to be applied by the intermediary institutions to customers with a portfolio size of 1,000,000 Turkish Liras or less and the interest rate to be applied in the event that all or part of the amount they are obliged to pay due to a non-credit purchase order is not deposited as of the clearing day or if the said amount is not in their account with the brokerage firm as of the clearing date (in case of default), the loan to be granted by the brokerage firm, Taking into account the cost of resources, a recommendation decision is taken to determine it at a reasonable level, avoiding practices that will adversely affect the perception of the capital market and damage confidence,
b) In cases of default that occurs as of 06.02.2023 for customers who have a residence, business address or account in the branch in the Earthquake Region as of 06.02.2023, Series: V, No: 65 of the Communiqué on Credit Purchase, Short Sale and Borrowing and Issuance of Capital Market Instruments (Communiqué on Credit Transactions) within the framework of Article 16 of the Communiqué on Credit Transactions, failure to establish transactions until 30.06.2023, not to carry out transactions related to default and default result to be directed,
c) The interest rates determined within the scope of subparagraph (a) of this article are reported to the Investor Risk Monitoring System of the Central Registry Agency AŞ (CRA) by the intermediary institutions on a customer basis,
INITIAL EQUITY PROTECTION RATIO REDUCED TO 20 PERCENT
2) Until 30.06.2023, in the capital adequacy tables prepared by the intermediary institutions, the position risk ratio for the shares taken into their portfolios will be calculated over 3% instead of 10%, and the position risk ratio for "Other customers" monitored under the credit account will be calculated over 4% instead of 8%,
3) In the calculation of the general transaction limit to be made in accordance with Article 7 of the Communiqué on Credit Transactions until 30.06.2023, the loans extended to customers who have a residence, business address or account in the branch as of 06.02.2023 in the Earthquake Region shall not be taken into account,
4) The initial equity protection ratio, which was determined as 35% in accordance with the Decision of our Board dated 19.03.2020 and numbered 17/400, will be applied as 20% until 10.04.2023,
5) In order to extend the Decision taken by our Board on 06.02.2023 for the investors in the Earthquake Region to all investors;
a) In the event that all or part of the amount that the customer is obliged to pay due to a non-credit purchase order is not deposited as of the clearing day or the said amount is not in the customer's account with the intermediary institution as of the clearing date, the transaction is established within the framework of Article 16 of the Communiqué on Credit Transactions,
b) In accordance with Article 17 of the Communiqué on Credit Transactions, the equity protection ratio must be at least 20% during the continuation of the credit capital market instrument transactions,
c) In accordance with Article 18 of the Communiqué on Credit Transactions, the authority to close the loan by selling the capital market instruments purchased on credit and/or given as equity and the failure of any purchase order of the customer to whom the equity completion notice has been sent during the period from the day of the notification until the equity is completed, to the extent that the provisions regarding them comply with the intermediary institutions' own risk policies and taking into account the customer demands as much as possible, Can be applied flexibly until 10.04.2023,
6) Without prejudice to the provisions of the Private Pension Savings and Investment System Law No. 4632 and the relevant legislation issued on the basis of this Law, the receivables, excluding the state contribution arising from the private pension contracts to be transferred by the customers to the investment institutions, are among the assets that can be accepted as equity in the credit purchase, short sale and borrowing and lending transactions of capital market instruments in accordance with the first paragraph of Article 12 of the Communiqué on Credit Transactions. and 100% of these receivables will be considered equity.
SHARES CAN BE TAKEN BACK WITHOUT THE DECISION OF THE GENERAL ASSEMBLY
2. Resolution of the Board Decision Body numbered i-CMB.22.7 (dated 14.02.2023 and 9/177 s.k.):
Until further notice, regardless of whether there is a repurchase program in force, to facilitate the share repurchase transactions of the partnerships whose shares are traded on the stock exchange and their subsidiaries and to protect investors;
1) Public partnerships whose shares are traded on the stock exchange may initiate a buyback program with the decision of the board of directors to be presented to the shareholders at the first general meeting to be held without seeking the decision of the general assembly, that the decision of the board of directors should include the purpose of the repurchase, the maximum period foreseen of the repurchase program, the maximum number of shares to be taken and the maximum amount of funds to be used, and that the decision of the board of directors should include the regulations regarding the special situation disclosures of the Board. to be made public within the framework of
2) That the subsidiaries of public partnerships whose shares are traded on the stock exchange may also initiate a repurchase program with the decision of the board of directors to be presented to the shareholders of the parent company together with their own partners at the first general meeting to be held without seeking the decision of the general assembly, and that this decision of the board of directors shall be subject to the principles in the first article,
3) Public partnerships and their subsidiaries that have a repurchase program in force may continue their repurchase program with the conditions specified in this decision without the need for a separate decision by the board of directors,
4) Communiqué No. II-22.1 on Repurchased Shares; That the articles 9 (except for the first sentence of the second paragraph), 12 (except for the fifth, sixth and ninth paragraphs), subparagraphs b, c and d of the first paragraph of Article 15 and the second, sixth and ninth paragraphs of Article 19 shall not apply,
5) The same principles shall be applied to the free shares acquired due to the repurchased shares,
6) The shares repurchased within the framework of the policy decision cannot be sold for a period of 30 days from the date of repurchase and the "first in, first out" method is applied in the calculation of the 30-day period,
7) It has been decided to repeal the announcements dated 21.07.2016 and 25.07.2016 and the resolution dated 23/06/2022 and numbered 34/959 and the principle decisions dated 21.08.2015 and numbered 21/1023.
In the statement, it was noted that the decision taken by the Board on February 6 for investors in the earthquake region included the following decisions to cover all investors:
"In the event that all or part of the amount that the customer is obliged to pay due to a non-credit purchase order is not deposited as of the clearing day or the said amount is not in the customer's account with the intermediary institution as of the clearing date, the transaction will be established within the framework of Article 16 of the Communiqué on Credit Transactions.
In accordance with Article 17 of the Communiqué on Credit Transactions, the equity protection rate will be at least 20 percent during the continuation of the credit capital market instrument transactions.
EQUITY WILL BE ACCEPTABLE
3. Resolution of the Board Decision Body i-CMB 128.19 (dated 14.02.2023 and numbered 9/178 s.k.)
1) The limit in Article 27 of the Share Communiqué No. VII-128.1 on the obligation to issue an information form for the shareholders of partnerships whose shares are traded on the stock exchange shall be applied as three percent from the date of this decision until further notice.
2) In the event that the sum of the sales to be made by the shareholders after the date of this decision and the sales made in the last twelve months exceeds ten percent of the company's share capital, regardless of the ratio in the first article, before these share sales,
A share sale information form, the principles of which are determined by the Board, will be issued and this form will be submitted to the approval of the Board before the sale."
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