First published 3 August 2010
CMB has announced new trading principles for thin stocks through
its resolution dated 23.07.2010 and numbered 21/657. New principles
are expected to contribute to the efficiency of the price formation
in ISE. However, the resolution has raised fairness concerns and
has also created adverse reactions in the market.
CMB, for the implementation of the new trading principles, has
clarified the definition of the term "free float" through
its resolution dated 23.07.2010 and numbered 21/655. As per the
resolution; stocks held by (i) public entities, (ii) company
founders, their close relatives and affiliates, (iii) real or legal
persons holding at least 5% of company's share capital, (iv)
company's BoD members, high level executives and their close
relatives and/or (v) foundations and associations established by
the company, and stocks (i) pledged as security and/or (ii)
restricted for or can not be subject to trading activities due
