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Renewed Communiqué and Guide for Disclosure of
Material Events
*
Att. Ali Sami Er
For those investing in capital markets, immediate access to devel-
opments about issuers, the so-called
material events
, is very crucial.
Alteration of this system to meet transparency demands of investors is
inevitable. In parallel to reformation of the entire capital markets
regime in Turkey, after the promulgation of the new Capital Markets
Law, the Communiqué on Material Events (“Communiqué”) was also
renewed on January 23, 2014. However, the Guide that will shed light
on the interpretation of the provisions laid down by the Communiqué
was announced on June 27, 2014.
This article, reflecting the explanations in the Guide and the new
rules set forth in the Communiqué, aims to be a guide for the investor
relations departments. The article will elaborate on disclosure of inside
and ongoing information, the obligations of the executives who have
access to the inside information, the scope of insiders list, forward
looking statements, the form, time and language of the disclosures, dis-
closure updates and the possible sanctions for not fulfilling the disclo-
sure requirements.
Inside Information
The purpose of the obligation to disclose inside information is to
ensure simultaneous and equal distribution of information for all mar-
ket participants and thereby to prevent incorrect pricing that might
have occurred in result of incomplete and inaccurate information in the
market. No amendment in respect of the general characteristics of the
inside information is made in the Communiqué. Just like the former
CAPITAL MARKETS LAW
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*
Article of August 2014