Turkey reverses ruling after insider-trading speculation
Turkey’s market regulator reversed a July 13 decision that had raised concern among the media and investors that rules on insider trading were being relaxed.
The decision, which was designed to help firms buy back shares ahead of the announcement of second quarter earnings, has been revoked due to “speculation and negative perception”, the Capital Market Board said in a statement on its website.
The measure, under regulation 104, was designed to ease share purchases by firms and related persons, the board said. Sanctions against insider trading were set out in regulation 106 and had not been changed, it said. Nevertheless, the decision had been cancelled, it added.
Turkey stock market was among the biggest losers in emerging markets last week after President Recep Tayyip Erdoğan appointed his son-in-law Berat Albayrak as minister in charge of the economy and Erdoğan made himself the sole authority to appoint senior central bank officials.
The Capital Markets Board had said on July 13 that share purchases would no longer be subject to regulation 104, which governs disruptive market practices, until Aug. 31, the deadline for reporting second-quarter earnings. It hadn’t given a detailed reason for the decision or explained the impact on insider-trading rules.