Participation Certificates Of Venture Capital Investment Funds And Real Estate Investment Funds

Participation Certificates Of Venture Capital Investment Funds And Real Estate Investment Funds

Participation certificates of venture capital investment funds and real estate investment funds (funds) shall be listed and traded in the Equity Market following an approval of prospectus or issuance document by Capital Markets Board and upon application from the founder provided that there is a related provision in their prospectus or issuance document.

Market

Among the funds that are approved to be listed and traded, the ones offered to public shall be traded in Structured Products and Fund Market (SPFM) and the ones offered to the qualified investors shall be traded in Venture Capital Market (VCM).

Only qualified investors are allowed to trade in Venture Capital Market (VCM).

Having received the buy or sell order to convey to the Exchange, the member is obliged to confirm that its customer is a qualified investor before sending the order. Otherwise, the related member will be legally and financially bound in the event of transactions made against the regulations.

Trading Method

In VCM, funds are traded with continuous trading (they are included opening and closing auctions) in accordance with the resolution of CMB.

In CSPM, certificates shall be traded with continuous trading method (also included in the opening and closing sections of the session). In case of request from the founder or portfolio management company, liquidity providing or market making activities can be carried out for these instruments.

Trading Unit

Trading unit of the funds is lot. One participation certificate of a fund is equal to 1 lot.

Base Price

Unit price of the fund determined by the founder or the portfolio management company and announced in Public Disclosure Platform (PDP) before the first trading day shall be taken as the base price on the first trading day in the Exchange. In the following days the base price is determined by the current method applied in the Equity Market.

Price Margin:

Price margin shall be applied as 20%.

Price Ticks

Price ticks and price ranges for ETFs shall also be applied for the funds.

Feature Code (Extension)

Feature codes for real estate investment funds are listed below:

Feature Code Explanation
.F1 Participation certificates of real estate investment funds
.TF1 Buy-In transactions for participation certificates of funds

Feature codes for venture capital investment funds are listed below:

Feature Code Explanation
.F2 Participation certificates of venture capital investment funds
.TF2 Buy-In transactions for participation certificates of funds

Maximum Order Value

Maximum order value will be 3 million TL.

Gross Settlement, Margin Trading and Short Selling

The funds that are traded in VCM shall not be subject to margin trading or short selling, in accordance with the related CMB resolution. According to the same resolution, certificates are subject to gross settlement and are categorized under group “D”.

The funds that are traded in CSPM shall not be subject to margin trading or short selling as well. General Clearing and Settlement Principles for Equity Market (by netting off) will be applied.

Circuit Breaker

Circuit breaker shall not be applicable to the trading of funds.

Principles Related to Clearing and Settlement

Clearing and settlement of fund trades shall be carried out on the second workday following the transaction day (T+2) by Takasbank in accordance with its own regulations.

Exchange Fees

Exchange fees in effect for equities shall be applied but order cancellation, price worsening and volume reduction fees shall not be charged for the trading of funds. In cases where market making activities are carried out, discount that is applied for market makers in equities shall also be effective for the funds.

Suspension of Trading and Delisting

In accordance with the first paragraph of article 31 of the Borsa İstanbul Listing Directive that regulates the conditions for trade suspension and delisting, trading in funds shall be suspended and funds shall be delisted in below conditions:

a) Type change or liquidation of the fund for any reason,

b) Termination of the fund,

c) Detection of breach of public disclosure obligation regulated in Annex 5 of the CMB’s Communiqué on Principles of Exchange Traded Funds numbered III-52.2 for the third time in last year,

d) A request from CMB against the trading of funds in the Exchange

Trading in funds -which are founded for a specific time period- are to be suspended upon a written request from the founder or portfolio management company, 3 business days prior to the termination.

Public Disclosure

Founder of the investment fund that is being traded in the Equity Market shall disclose material information that may affect investors’ investment decisions and documents and reports that are stated in related CMB Communiques, at Public Disclosure Platform.