Article 13- If the securities representing partnership rights are being listed initially, the application must cover the entire securities of same type issued until the application date, and
for the corporation;
a) The financial statements of the company for the last three years including the one for the respective quarter must have been independently audited,
b) At least three calendar years must have elapsed since the establishment of the corporation and financial statements of the last three years must have been publicly disclosed,
c) The corporation must have made profits before tax in the last two consecutive years prior to the application date (it should have made profits in the previous year if the market capitilization of the publicly offered shares is at least YTL 38 million¹ or if the free-float rate is at least 35%),
d) The shareholders’ equity in the last independently audited financial statement of the corporation must be at least YTL 13 million,
e) Market capitalization of the publicly offered shares of the corporation must be at least YTL 20 million and the rate of the nominal value of these shares to paid-in or issued capital must be at least 25% (if this rate is below 25%, market capitalization of the publicly offered shares must be at least YTL 38 million),
f) The Exchange management must have had the corporation’s financial structure examined and accepted its ability to continue as an ongoing concern,
g) The corporation’s Articles of Incorporation must not include any provisions restricting the transfer and circulation of the securities to be traded on the Exchange or preventing the shareholders from exercising their rights,
h) Significant legal disputes which might affect the corporation’s production or activities must not exist,
i) For reasons other than acceptable to the Exchange, the corporation must not have suspended its production activities for more than three months within the previous year, not filed for liquidation or entered into composition or any other arrangement with its creditors, and not have faced similar situations determined by the Exchange,
j) The corporation’s securities must comply with the criteria pre-determined by the ISE management in terms of current and potential trading volumes,
k) It must be documented that the corporation’s legal situation in terms of its establishment and activities as well as the legal situation of its shares comply with the respective legislation.
For the securities with special characteristics such as securities with no voting rights and the securities with attached privileges, Executive Council may decide to demand additional requirements as well as may not ask for some conditions stated in section one.
The amounts stated in section one, subsection (c), (d) and (e) may be increased by the Executive Council considering the average increase in the producers price index published by the State Institute of Statistics.
LISTING OF MERGERS AND DEMERGERS
Article 14- When the legal entity of a corporation whose stocks are listed on the Exchange is terminated due to a merger with another company through its entire assets and liabilities and at least 51% of the capital of the acquiring/newly established company is provided by the assets of the corporation whose stocks are listed on the Exchange, the listing requirements do not apply for the listing of the stocks of the acquiring/newly established company.
In the event that a new corporation is established through allotment of at least 15% of the total assets (as stated in its last balance sheet) of a company listed on the Exchange, which has been operational for the last three years and profited before tax for the last two years, provided that it is covered from the items related to the company’s production and activities and that the company holds at least 51% of the capital of the newly established corporation, the listing requirements mentioned in “13b” and “13c” do not apply to the newly established corporation upon its application to the Exchange with the relevant documents stating its position.
LISTING OF STOCKS OF INVESTMENT TRUSTS
Article 15- For the stocks issued by the investment trusts to be listed on the Exchange, following conditions are required.
a) The issued capital and free float ratio of the corporation must be at least in the amounts indicated in the relevant regulations of the CMB,
b) The corporation’s Articles of Incorporation must not include any provisions restricting the transfer and circulation of the securities to be traded on the Exchange or preventing the shareholders from exercising their rights,
c) It must be documented that the company’s legal situation in terms of its establishment and activities as well as the legal situation of its shares comply with the respective legislation.
LISTING OF SECURITIES REPRESENTING INDEBTEDNESS
Article 16- The following conditions are required for the listing of securities representing indebtedness on the Exchange:
a) Application must refer to entirety of the series,
b) The nominal value of the issue must be at least YTL 700.000,
c) The entire issue amount of the issue must be offered to public,
d) Of the corporation with securities to be listed;
1) At least three calendar years must have elapsed since the establishment date (two years if free float rate is at least 25%),
2) The latest financial statement should have been independently audited,
3) The corporation should have earned profit before tax in the last two consecutive years according to its financial statements before the application (if corporation’s shares publicly held by at least 25%, it should have earned profit in the previous year),
4) The shareholders’ equity in the last independently audited balance sheet of the corporation must be at least YTL 1.300.000,
5) The financing structure of the corporation must be determined and approved by the ISE,
6) The security must conform to the predetermined criteria regarding current and expected turnover set by the Exchange,
7) The corporation’s legal situation regarding its establishment and activities and legal situation of its securities representing indebtedness must be documented so as to comply with the related regulation,
8) The corporation’s Articles of Incorporation must not include any provisions restricting the transfer and circulation of the securities traded on the Exchange or preventing the shareholders from exercising their right.
For the listing of the convertible bonds, in addition to the requirements stated on subsection (1) the stocks exchanged with bonds should be listed either to an exchange or to an organized market. However, if the Exchange management had a clear indication that the investors have enough information regarding the price of the stocks, this condition may not be sought.
The amounts stated in subsection (b) and (d/4) may be increased by the Executive Council considering the average increase in the producers price index published by the State Institute of Statistics.
LISTING OF PARTICIPATION CERTIFICATES OF MUTUAL FUNDS
Article 17- The participation certificates of a mutual fund which is defined as eligible for trading on the Exchange by capital market legislation and the fund’s statue are listed on the Exchange with the written request of CMB.
LISTING OF SECURITIES OF PUBLIC INSTITUTIONS
Article 18- Securities issued by government administration with general and annexed budgets, local administrations and state economic enterprises are listed and/or traded according to the trading rules of the Exchange by the decision of the Executive Council upon the request of the related Ministry.
In the sale of the government owned shares in affiliated corporations and participations as well as in other corporations subject to privatization through public offering, the Executive Council may not ask for some or any of the requirements stated in article 13.
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