Short Selling Ban on BIST 50 Lifted as of Today
The Capital Markets Board (CMB) announced on February 6, 2023, that the ban on short selling, implemented following the earthquakes centered in Kahramanmaraş, will be lifted for shares in the BIST 50 index of Borsa İstanbul on January 2, 2025. The CMB stated that this decision was made to enhance market liquidity and improve the strategic flexibility of investors.
In the decision published in the Official Gazette, it was expressed that "the ban on short selling in the Borsa İstanbul AŞ stock market, decided by the Board Decision Body on 06/02/2023, will be lifted as of 02/01/2025, limited to the share markets included in the BIST 50 index announced by Borsa İstanbul AŞ." It was emphasized that for transactions where the short selling ban is lifted, pressing the short selling button is mandatory for positions sold without ownership during the day and closed on the same day.
Which stocks can be subject to short selling? With the lifting of the short selling ban, shares of companies listed in the BIST 50 index will be eligible for these transactions. Major companies such as AEFES, AKBNK, ASELS, BIMAS, GARAN, THYAO, TUPRS, and SISE are included among these shares. Investors need to follow the procedures specified by Borsa İstanbul to perform short selling transactions on the relevant shares.
This regulation offers a wide range of trading opportunities for both individual and institutional investors. Short selling can be utilized as a strategic tool depending on market conditions.
What is short selling? Short selling means that an investor borrows a security they do not own and sells it. This transaction is typically carried out with the expectation that the price of an asset will decline. The goal is to repurchase the borrowed shares at a lower price when the price falls, return them, and profit from the difference.
Despite its high risk, short selling can be seen as an effective way for experienced investors to capitalize on market movements. However, it is crucial for investors to carefully analyze market dynamics in such transactions.