Amendment in the Communiqué on the Procedures and Principals for the Book-Keeping of Dematerialized Capital Market Instruments
An amendment in the Communiqué on the Procedures and Principals for the Book-Keeping of Dematerialized Capital Market Instruments (II-13.1), is published in the Official Gazzette No 30809 on 22 June 2019 and entered into force.
The amendment ensures an opportunity to the foreign central securities depository (FCSD) accounts to be opened at MKK for capital market instruments collectively held on behalf of non-resident beneficial owners. The amendment defines rules and obligations for FCSDs with regard to omnibus account operations. Furthermore, with the amendment, it is also made possible for all intermediary institutions and banks which have general custody licenses in Turkey to be subject to the rules determined for FCSD with regard to the custody services they provide to non-resident beneficial owners.
The omnibus account structure is commonly used by FCSDs in their global operations. With the introduction of these accounts to our capital markets, the use of the Turkish capital market instruments as collateral in international transactions will become easier and integration of our capital markets with other international markets will be higher.
As per the decision of the CMB based on the authorization granted by the Communiqué, it is only allowed to hold government debt securities in the omnibus accounts, which could be owned by foreign companies and/or funds that are classified as companies with limited liability in the Corporate Tax Law No:5520 Article No:2 first paragraph.