Amendments to the Regulation on the Establishment, Activities, Working Principles, and Supervision of the Central Securities Depository and to the Communiqué on the Principles and Procedures for the Book-Entry Recording of Dematerialized Capital Market Instruments

Amendments were made to the Regulation on the Establishment, Activities, Working Principles, and Supervision of the Central Securities Depository ("Regulation") and to the Communiqué on the Principles and Procedures for the Book-Entry Recording of Dematerialized Capital Market.

Instruments ("Communiqué"), published in the Official Gazette dated 29 April 2025 and numbered 32885, through the amending regulation (“Amending Regulation”) and the amending communiqué (“Amending Communiqué”), respectively.

The Central Securities Depository (“CSD”) is a joint stock company with private legal entity status, established to carry out the dematerialization of capital market instruments, to record these instruments and the rights attached to them electronically by members and rights holders, to provide central custody services, and to fulfill other duties assigned by the Capital Markets Board within the framework of capital markets legislation.

As is known, Article 9 of the Regulation regulates the duties and powers of the CSD. With the Amending Regulation, a new paragraph was added to the first paragraph of Article 9, assigning the CSD the duty to operate a central document management system that enables the electronic collection of documents required for the opening of accounts at investment institutions on behalf of non-resident rights holders and their sharing with the respective investment institutions.

In parallel with the amendment introduced by the Amending Regulation, the Communiqué, which sets out the procedures and principles regarding the electronic recording by the CSD of capital market instruments and related rights for the secure, fast, and efficient conduct of capital market transactions, was also amended.

The Amending Communiqué stipulates that investment institutions may obtain the documents required for opening accounts on behalf of non-resident rights holders through the central document management system provided by the CSD, and that the procedures and principles governing the use and operation of this document management system shall be determined by the CSD.

With these amendments, it is aimed to ensure that the processes related to the recording of capital market instruments are conducted in a more efficient, secure, and digital manner.

Enforcement

The Amending Regulation and the Amending Communiqué entered into force on the date of their publication.