Disclosure Or Ponzimonia?

During the "Maintaining Market Integrity in Turbulent Times: Surveillance, Inspection and Enforcement for Securities" forum that was recently held in Istanbul and co-organized by the U.S. Securities and Exchange Commission and the Capital Markets Board (the CMB) of Turkey, one of the most debated issues was the implementation and functioning of adequate public disclosure mechanisms used to prevent market manipulation and formation of ponzi schemes¹.

Under the Turkish capital markets scheme, the main piece of legislation with regards to the disclosure obligation of publicly-owned companies is the CMB Communiqué, Series VIII, No:54 on Principles Regarding Public Disclosure of Material Events (the Communiqué), which entered into force in February 2009. In an attempt to provide maximum protection for investors, the CMB has considered the European Union's corresponding legislation together with the market players' expectations while preparing the Communiqué.