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This legal alert aims to set forth the amendment of Capital Markets Board of Turkey on the Communiqué on Principles Regarding Record Keeping of Dematerialized Capital Markets Instruments numbered II-13.1.
Capital Markets Board of Turkey (“CMB”) has adopted a new Communiqué Amending Communiqué No. II-13.1 published in the Official Gazette numbered 30255 and dated November 29, 2017 (“Amendment Communiqué”).
With this Amendment Communiqué;
I. CMB enabled the foreign custody institutions to obtain the statement of holdings of their clients, as beneficial owners, who are resident abroad and to whom such foreign custody institution provides custody service abroad (“Client”), from Central Registry Agency in Turkey (“Merkezi Kayıt Kuruluşu” or “MKK”).
In order to carry out the foregoing, a local custody institution, as a member of MKK, shall apply to MKK to convey the request of the foreign custody institution with regard to such statement of holdings accompanied with the documents below:
Further, CMB requires the foreign custody institution to satisfy the below conditions prior to conveying its request to MKK.
II. The reference to “share ownership” is changed into “beneficial ownership” under Article 35 of the Communiqué No. II-13.1 such that MKK may share the information regarding the beneficial owners with the issuers in the framework of rules and procedures adapted by MKK for submission to administrative authorities and complying with the requirements under applicable legislation.