Capital Markets Board President Announces: Ban on Short Selling in the Stock Market is Lifted

The Chairman of the Capital Markets Board, İbrahim Ömer Gönül, has made the anticipated statement regarding the lifting of the short-selling ban in the stock market. According to reports, Gönül stated that technical infrastructure work is ongoing, indicating that the ban could be lifted soon and may not extend into 2025.

The short-selling ban was implemented following the earthquakes that occurred on February 6, 2023. Gönül said, "We are preparing the technical infrastructure for lifting the short-selling ban. We aim to lift this ban in a short period." This statement has brought a conclusion to ongoing discussions in the markets and created a positive atmosphere among market participants.

Experts are emphasizing foreign capital inflow. The lifting of the short-selling ban is eagerly awaited by domestic and foreign investors, and experts suggest that this step could increase foreign investor activity in the stock market. Short-selling is described as the act of borrowing securities that an investor does not own to sell them, typically based on the expectation that the asset's price will decrease.

The removal of the ban could contribute to increased liquidity in the stock market and the development of market depth. Active participation by foreign investors through short-selling could make the market more attractive internationally.

What is short-selling? Short-selling is a process where investors borrow securities they do not own to sell them, aiming to buy them back at a lower price. This process is carried out with the expectation that the stock's price will decrease, allowing investors to profit by repurchasing the borrowed shares at a lower cost.

The short-selling ban was enacted after the February 6 earthquakes, under the belief that it could heighten investors' risks and cause fluctuations in stock prices. However, as market balances are expected to stabilize and technical infrastructure works are completed, the lifting of this ban is anticipated.