M. Özkan Özdoğan
The Capital Markets Board (“CMB”) imposed administrative fines on three separate companies due to discrepancies in the utilization of public offering proceeds.
It has been determined that the information in these companies’ fund utilization reports, as well as in the corresponding audit reports, was found to be “false, misleading, and incomplete”.
Through these administrative fines, the CMB has signaled its thorough supervision, extending beyond the initial public offering application processes to encompass the post-completion phase for public companies. This highlights the practical application of capital market legislation and reaffirms the CMB’s commitment to an “investor protection” approach.
Given the current historic peak in the number of individual investors in Borsa Istanbul, it is crucial for companies in the process of going public or those already publicly traded to refrain from transactions that could result in investor losses and to strictly comply with the capital market legislation. Failure to do so may lead to a potential “surge in litigation” for public companies.