A parliamentary commission approves a draft law that envisions merging the Istanbul Stock Exchange (İMKB) and the Gold Exchange, a move that may end the bourse’s fragmented structure.
The Istanbul Stock Exchange (İMKB) and the Istanbul Gold Exchange are set to be merged under one umbrella called the “Borsa İstanbul” as part of a proposed capital markets draft law. This is an important step in the government’s bit to privatize the bourse and turn Istanbul into a regional finance center. The draft law, which was approved by the Parliament’s Planning and Budget Commission and calls for the formation of a company under the name of “Borsa Istanbul,” would be prepared by the Capital Markets Board (SPK); once it receives the green light from the relevant minister, the draft will become law within six months.
Assets to be transferred
In addition, all of the real estate, buildings and land plots belonging to the İMKB will be transferred to Borsa Istanbul no later than one month after the draft becomes law, after which the deed will be stamped by the Turkish Treasury. Meanwhile, 49 percent of Borsa Istanbul’s shares will belong to the Turkish Treasury, while 51 percent will remain with Borsa Istanbul.
The Association of Capital Market Intermediaries Institutions of Turkey (TSPAKB) President Atilla Köksal said the draft was very important and would facilitate the development of capital markets. Noting that much of their requests had been accepted, he said: “There were some points with which we still had issues, but the Capital Markets Board will take these up at a later date and we will convey our viewpoints to the SPK in the near future.” The TSPAKB will have a 1 percent share in Borsa Istanbul, according to the draft law. “We wanted a 5 percent share, but they gave us 1 percent,” he said, but added that even discussing a Borsa Istanbul was a positive development.
Deputy Prime Minister Ali Babacan said Borsa Istanbul would become a dynamic organization, but added that the SPK would have the last word. İMKB President İbrahim Turan, meanwhile, said they wanted to put an end to the fragmented nature of the İMKB.
Nationalist Movement Party (MHP) Antalya deputy Mehmet Günal, however, expressed his opposition to the draft law, saying, “The draft directly privatizes the Istanbul Stock Exchange.”
(Anatolia News Agency)
