Author

Muhsin Keskin

Browsing

Recent development

As previously reported, Turkey has established its Sovereign Wealth Fund (Türkiye Varlık Fonu) (the “Sovereign Fund”) and the Turkish Sovereign Wealth Fund Management Incorporation (Türkiye Varlık Fonu Yönetimi Anonim Şirketi) (the “Asset Manager”), its asset management company. On November 9, the Council of Ministers’ decree regarding the Asset Manager’s operating principles(“Decree”) was published in the Official Gazette.

Recent development

In an effort to provide financing for infrastructure, diversify the financial instruments, and increase the depth of capital markets, Turkey introduced the Law on the Establishment of Turkish Sovereign Wealth Fund (the “Law”) on August 26, 2016. The Law establishes the Turkish Sovereign Wealth Fund (Türkiye Varlık Fonu / “Sovereign Fund”) and the Turkish Sovereign Wealth Fund Management Joint Stock Company (Türkiye Varlık Fonu Yönetimi Anonim Şirketi / “Management Company”), its asset management company.

Recent development

On July 21, 2016, the Turkish Capital Markets Board (the “CMB”) decided to remove the limits under the Communiqué on Share Buy-backs (the “Communiqué”) that are applicable to public companies’ acquisition of their own shares. This measure is part of the CMB’s efforts to minimize and mitigate the negative effects on the shares traded in the Borsa Istanbul (“BIST”) by the attempted coup that took place on July 15, 2016. The decision seeks to stabilize the prices of the shares traded on the BIST, preventing any artificial decrease as a result of the coup attempt.