Crime incentivized on the stock exchange

The day before yesterday, the Capital Markets Board (CMB) lent its signature to an extraordinary resolution and decriminalized insider trading until 31 August. Assessing the resolution for Cumhuriyet, former CMB Chair Doğan Cansızlar said this was the first time in the board’s history that such a resolution had been taken, it was wrong to decriminalize trades that are a crime throughout the world and it would harm an already bad investment environment.

Paragraph three of article four of the communique in question governs transactions that stock market issuers and those closely connected to them perform. Accordingly, trading in the relevant capital market instruments made by people who are privy to inside knowledge or periodic information, or by such peoples’ spouses, children or those living in the same home, in the period from the day following the end of the accounting period in which financial tables and reports by issuers along with independent audit reports are compiled until such tables and reports are disclosed were deemed to be an act of market abuse. Under the CMB’s resolution the day before yesterday, if the said people make purchases on stock markets, they will be excluded from the scope of this article.

 Question marks increasing

 Doğan Cansızlar, who served as CMB Chair between 2000-2006, said, “Exceptions of this kind amount to market abuse. Insider trading constitutes a crime everywhere in the world and is deemed to be one of the two biggest crimes along with capital market manipulation.” Stressing that the resolution is contrary to international rules, Cansızlar said, “Taking this decision was incorrect in a period in which in any case credit rating agencies have issued downgrades and foreign investors’ question marks over Turkey are increasing. You are increasing question marks over a point where you are to instil greater confidence.”

 Rush to buy shares

 The CMB has resolved that share purchases transacted on the Istanbul Stock Markets until 31 August will be excluded from the scope of paragraph three of Article 4 of the Market Abuse Communique.

 Borsada suça teşvik