ERDEM-NEWSLETTER-2018-metin

195 CAPITAL MARKETS LAW According to Article, those who form or manage organized groups to execute acts that are defined as offenses under the law, are punished with imprisonment from two years to six years, unless this organized group is observed to be qualified to commit these offenses in view of its structure, quantity of members, tools and equipment, held for this purpose. Effective Remorse Only transaction-based manipulators may benefit from effective remorse. According to Article 107/3 of the CML, in the event that the person who has committed the crime defined in the first paragraph displays remorse, and pays to the Treasury an amount that is twice the benefit he/she has obtained or has caused to be obtained, not be- ing less than five hundred thousand Turkish Liras, no sanction shall be imposed if the payment has been made before the investigation commences. The sanction to be imposed shall be reduced by one-half, if the payment is made during the phase of the investigation. If the payment is, however, made during the phase of prosecution, up until the judgment is rendered, the sanction to be imposed shall be reduced by one-third. Conclusion Market abuse with manipulative behaviors not only increases the companies’ self-financing costs, but it also harms market integrity as well as investor confidence in the markets. For example, manipulation prevents the entry of new investors into the market by interrupting the supply and demand that is shaped by the free-market. As well, manipulation does not only affect investment decisions on the stock exchange. The losses of the companies and investors reach larger numbers as the data on the stock market are also taken as the basis in contracts that are signed off-exchanges for bank loans and guarantees. Technological developments enable easier access to financial information. This, however, also means that misleading information that will affect the value of the capital market instruments will rapidly spread. With technological development, it may be that a certain defi- nition of manipulation cannot be made, and different types of manipu- lation shall continue to emerge.