The Emerging Companies Market (ECM) was established as an organized, fair and transparent market that will provide an effective and liquid trading platform for companies with development and growth potential. Istanbul Stock Exchange Emerging Companies Market Regulation came into force following its publication in the Official Gazette on August 18, 2009.

With this new market, there are two markets for trading stocks on the Istanbul Stock Exchange (ISE), the Stock Market and the Emerging Companies Market.

Joint stock companies, which do not fully meet the quantitative listing criteria (operational age, capital, profit, market capitalization size etc.) of the ISE requirements but registered with the Capital Markets Board (CMB), can apply for admission to the ECM. This application can only be done for the shares to be issued by a capital increase through restriction of the pre-emptive rights of the existing shareholders.

Market Advisor system is established for companies at the ECM to help them get acquainted with, and better comply with the regulations of the CMB and the ISE. Companies have to make an agreement with a market advisor before applying to the ECM. Market advisor helps the company get prepared for the ECM application, and cosigns the application. Market advisor also submits a report to the ISE with its affirmative opinion regarding the company. The ISE Executive Council bases its admission decision on market advisor’s report and documents attached to the application. After admission to the ECM Directory, market advisor helps the company comply with the ISE and the CMB regulations. The Circular on Principles and Procedures Regarding Market Advisory at the ISE ECM was published on March 05, 2010.

Trading on the Emerging Companies Market shall be carried out on the same electronic platform with the Stock Market although by different trading methods.  “Continuous Auction with Market Maker” method is used for trading while “Single Price” method is used for the trading boards without a market maker.

The ECM allows investors to discover companies with high growth potential and the promising projects of such companies, to allocate their portfolio investments to such companies and to fulfill their financing requirements by becoming shareholders.  Intermediaries must get the “ECM Risk Notification Form”, which introduces the ECM to investors and states the Market’s main differences and risks, signed by investors before providing brokerage services for trading ECM shares.

For further details regarding to the ECM please click on to the following link:

  ISE Markets > Emerging Companies Market

  IPO and Listing at ISE > Initial Public Offering > Emerging Companies Market

  IPO and Listing at ISE > Listing > Stocks > Emerging Companies Market Markets > Emerging Companies Market

  The List of Authorized Market Advisors

  The ISE Emerging Companies Market Guide