Share buybacks (stock repurchases) are widely used as a way of financing policy in the world. As known, the current Turkish Commercial Code (No.6762), which came into force on 29.06.1956, has been changed completely with the new TCC (No.6102) and share buybacks are regulated in article 379 and following articles of new TCC.
In this framework, self-regulation of Capital Markets Board (01.09.2009 and No.27/748) that states rules for investment companies and intermediary institutions regarding share buybacks is abolished and a new self-regulation about the share buybacks is came into force, parallel to regulations in new TCC.
By the regulation, principles and essences for companies whose shares are traded in Istanbul Stock Exchange (ISE) regarding purchase of their own stocks in ISE are regulated and harmonization with new TCC is achieved. Under the regulation, the buyback ratio has been determined as 10% of company's paid in capital.
Especially against intense price fluctuations observed lately in world stock exchanges and ISE, it is aimed to provide opportunity to companies towards lessening price fluctuations in stock prices, and also provide a more transparent medium for the companies trading in their own shares and informing investors in a better way.