Page 15 - Investing in Borsa Istanbul Markets

9.Investor Rights, Corporate

Governance and Sustainability

Türkiye has a strong regulatory framework for corporate governance overseen by the
Capital Markets Board of Türkiye. Disclosure to the market by listed companies is
mandatory for certain corporate governance principles while an explanation is
required for non-mandatory areas. International standards for accounting and
auditing are in place.

MKK's Public Disclosure Platform (PDP), is an electronic system through which
electronically signed notifications required by the capital markets and Borsa İstan-
bul regulations are publicly disclosed. The system provides an access to reliable,
accurate, instantaneous, consistent and comprehensive information over the
World Wide Web simultaneously and at low costs. In addition to Borsa İstanbul
companies and ETFs, investment firms, portfolio management companies,
mutual funds, pension funds, real estate funds, venture capital investment
funds and foreign funds may also submit notifications to PDP. Independent
audit companies, on the other hand, send the electronically signed financial
statements for which independent audit is required, to the relevant company
electronically in order to be announced to the public.

Investors have the following rights, among others according to the relevant
regulation:

Obtaining and examining information (i.e. requesting
special audit)
Attending general assembly meetings
Voting rights
Minority rights
Dividend rights
Right issue
Bonus rights

Sustainability or environmental, social and governance (ESG) risk is
critically important for all entities in capital markets. Increased sensi-
tivity and expectations of investors have been helpful in facilitating
ESG reporting. In Türkiye, in addition to the corporate governance
principles, it is mandatory for publicly listed companies to explain
whether they comply with sustainability principles and if not
explain implications in terms of environmental and social risk
management. Borsa İstanbul Sustainability Index provides inves-
tors with a helpful tool in facilitating sustainability investments.
Borsa İstanbul also calculates Sustainability Participation Index
for investors who want to invest both on the themes of partici-
pation and sustainability.

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