• It is the spirit and not the form of law that keeps justice alive.
    Earl Warren


Capital Markets Board has announced a recent change in its Communiqué on Shares (VII-128.1) on 26 January 2018 (the “Amendment”).

According to the said Amendment, clause (c) of subparagraph 1 of Article 8 of the Communiqué on Principles Pertaining to Removal of Corporations from the Scope of Law and Obligation to Trade the Shares on Exchange (II-16.1) would not be applicable for the initial public offerings or for the companies that will go into public.

Hence, it would be sufficient for the Turkish companies going public to have more than net assets with an amount of TRY 10 million and net sales revenue with an amount of TRY 5 million according to their balance sheets of the past two years.

Prior to the Amendment, having a total sum of registered capital and legal reserves that is completely unreciprocated was also an obstacle, this limitation would not be applicable anymore.

The Amendment has entered into force as of January 26th, 2018. 

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