Türkiye bans short selling in Istanbul Stock Exchange to prevent market crash

Türkiye’s Capital Markets Board (CMB) introduced a series of measures on Sunday in response to recent developments in the Istanbul Stock Exchange.

The measures, which will be effective from March 24 until the close of trading on April 25 include:

• A ban on short selling in the equity markets of Borsa Istanbul (BIST), Türkiye’s stock exchange market
• Easing regulations on share buybacks for publicly traded companies.
• Flexibility in equity ratio requirements for margin trading in capital market transactions.

The CMB stated that these actions aim to ensure a reliable, transparent, efficient, stable, fair, and competitive environment for the functioning and development of capital markets while protecting the rights and interests of investors.

The board emphasized that it is closely monitoring transactions conducted in BIST to uphold market integrity and stability.