Overhauling Turkish public offerings

Author: | Published: 24 Feb 2014

Esin Attorney Partnership's Muhsin Keskin on how the country's comprehensive capital markets reforms will cause fundamental shifts in local primary markets

In response to changing conditions in local and international capital markets, in 2012 Turkey enacted its Capital Markets Law (CML) to modernise its capital markets legal infrastructure. The enactment of the CML did not complete the process of modernisation, however, as it only created the basic framework. A robust regulatory regime was also needed. To fill this gap, the Turkish Capital Markets Board (CMB) has recently adopted two communiqués which pick up where the CML left off.

The new system is aligned with EU regulations, and extends and clarifies the information to be disclosed under the prospectus regarding the offerings. With the recent changes, Turkish prospectuses now take a similar form to European and US examples.

Since the new communiqués took effect, however, there have been only two public...