"Short selling is making a comeback in the stock market."

The first step has been taken regarding the lifting of the short selling ban that has been in effect in the markets for a while. According to the decision of the Capital Markets Board (CMB), the short selling ban for companies listed in the BIST 50 will be lifted as of January 2.

Short selling was banned after the earthquakes on February 6, 2023.

CMB Chairman İbrahim Ömer Gönül stated in an announcement made in the last week of November, "Let's establish the technical infrastructure, and then we will lift the short selling ban." Experts indicated that the lifting of the ban could lead to an increase in foreign investor inflows into the stock market.

CMB DECISION ANNOUNCED

The following statements were included in the bulletin of the Capital Markets Board: With the decision of the Board Decision Organ dated 06/02/2023

The short selling ban imposed on the Borsa İstanbul AŞ equity markets will be lifted as of 02/01/2025, limited to the equity markets included in the BIST 50 index announced by Borsa İstanbul AŞ,

It has been decided to inform investors and investment institutions that in transactions conducted in the equity markets where the short selling ban is lifted, it is mandatory to press the short selling button for positions that are sold without being owned during the day and closed on the same day, in accordance with Articles 24 and 28 of the CMB's Communiqué Serial: V, No: 65 on Margin Trading, Short Selling, and Borrowing and Lending Transactions of Capital Market Instruments.

WHAT IS SHORT SELLING IN THE STOCK MARKET?

Short selling is the process of selling a security that an investor does not own by borrowing it. This process is typically used by investors who anticipate that the price of an asset will decline.

The aim is to buy back the stock at a lower price when its price drops and return the borrowed shares, thus making a profit from the difference.