Turkey Bans Short Selling, Eases Buyback Rules to Bolster Stocks
The new rules broaden a previous ban that limited short-selling to only the top-50 listed companies.
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Turkey’s capital markets regulator banned short-selling across all stocks and relaxed share buyback rules in a bid to prevent further equity losses after the country’s benchmark index tumbled last week following the detention of a prominent opposition leader.
The new rules, announced late Sunday, broaden a previous ban that limited short-selling to only the top-50 listed companies. In addition, the regulator has allowed listed companies to repurchase shares at prices above the last market close and reduced the minimum equity capital protection requirement for margin trading to 20% from 35%.