ERDEM-NEWSLETTER-2018-metin

193 CAPITAL MARKETS LAW news about a company that is announced in newspapers or on televi- sion, and which affect the company’s stock value, and misinformation in the prospectus drafted for the issuance of capital market instruments, are examples of this offense. For the formation of an offense, there should be a willful act for the purposes specified in the Article. In addition, according to the amendment dated 07.04.2015 brought by Law numbered 6637, the offense arises only when one benefits from the information-based manipulation. Another aspect to be considered in the Article is that the persons who prepare research and audit reports regarding issuers and capital market instruments may also be held liable. Specific Provisions for Investment Firms Investment firms have an obligation of notification pursuant to Article 102 of the CML. According to this Article, if there is a mat- ter implying any information or doubt that a transaction constitutes a manipulation, the investment firms are obliged to notify this situation to the Capital Markets Board (“Board”), or to other institutions and or- ganizations to be determined by the Board. The Board shall determine the principles and procedures of the obligation of notification. Even though there is a provision in special laws, those who make a notifica- tion to the Board cannot give information to third parties, agencies and institutions, including those who are engaged in the transactions, about the notification made, and about those to whom the notifica- tion has been made, except for the courts, prosecution offices, and the Presidency of the Financial Crimes Investigation Board. Besides, according to Article 8 of the Disciplinary Regulations of the Turkish Capital Markets Association of Turkey (“Association”), investment firms that commit a manipulation offense, or pave the way for persons to commit this offense, shall be temporarily suspended from Association membership. The suspension may not exceed six months, taking into account the nature and the severity of the act, and shall be deprived of the Association membership rights. To apply this sanction, the act must be ruled as an offense, and be found to be