The Emerging Companies Market (ECM) was established as a distinct market within the ISE to create a transparent and organized platform where securities, issued in order to raise funds from the capital markets by companies with growth and development potential, can be traded.

Securities of the companies registered by the Capital Markets Board of Turkey (CMB), but fail the ISE listing requirements are traded on the ECM. Thanks to the ECM, such companies will have the opportunity to raise funds while presenting themselves better, and adding to their visibility among investors as well as their operational markets.

Admission to the ECM Directory (refers to the list of securities, which can be traded on the ECM) is done only for shares to be issued as a result of capital increase through partial or full restriction of the pre-emptive rights of the existing shareholders, or capital increase through private placement.  In private placements, prospectus and circular are not required. In the case of private placements, the number of buyers shall not exceed 100 and the transaction should be executed on the Exchange.

The shares of the existing shareholders that are not included in the ECM Directory may not be traded on the primary or secondary market of the ECM. Yet, there are no restrictions on the purchase of the shares by the existing shareholders from the ECM primary or secondary market and sales thereof afterwards. This rule aims to channel the funds raised by issuing shares on the ECM to the company and directly contribute to the financial structure of the company.

Market Advisor is an institution authorized by the ISE to serve as a “market advisor” as defined by the ECM Regulation. Within the framework of the CMB and the ISE regulations, the market advisor is obligated to assist the company to complete the preparations necessary for the application for admission to the ECM Directory and attest, jointly with the company, the accuracy of the information and documents submitted to the ISE and disclosed to the public; to write the company report to be submitted to the ISE along with the ECM application; and after admittance to the ECM Directory, to provide advisory services to the company to comply with the capital markets regulations and the ISE regulations.