"Dematerialization of capital market instruments
- ARTICLE 13 - (1) In principle, capital market instruments shall be issued in the dematerialized form in the electronic environment, without certificates. The Board determines the capital market instruments to be issued in dematerialized form and the rights to be monitored on record; establishes the principles and procedures regarding their dematerialisation as to their types and issuers, the record keeping and the termination of the monitoring of records belonging to issuers who have lost membership conditions.
- (2) Dematerialized capital market instruments shall be kept in accounts created according to name without considering whether they are registered or payable to the bearer. According to the type of the capital market instrument and the nature of its issuer or MKK member, the Board may decide that accounts be kept collectively, without opening an account in the name of the right holder of capital market instruments.
- (3) Rights related to dematerialized capital market instruments shall be monitored by MKK. The records shall be kept by MKK members, in the electronic environment created by this agency.
- (4) Capital market instruments which are decided to be dematerialized must be delivered according to the principles established by the Board. Delivered capital market instruments shall automatically become invalid. Undelivered capital market instruments cannot be traded on exchange after the dematerialization decision, intermediary institutions cannot provide intermediary services for the purchase and sale of these capital market instruments.
- (5) The date of the notification made to MKK shall be considered in the claim of the rights towards third parties on capital market instruments monitored on records.
- (6) Regarding registration share transfer share register by corporations, pursuant to the related provisions of the Law numbered 6102, the records at MKK shall be taken as basis, without the need for further application of the interested parties.
- (7) Measures, attachments and all kinds of similar administrative and judicial requests with regard to the dematerialized capital instruments shall be carried out by MKK members. Provisions in the related laws regarding the follow-up and collection of receivables for which a notice has been made in the electronic environment shall be reserved."
As per the Article 81 of the Capital Market Law, MKK is a joint-stock corporation with a legal entity status granted under the private law, established to perform transactions related to the dematerialization of capital market instruments, for the purposes of monitoring such dematerialized instruments and their attached rights in electronic media by participants and beneficiaries, providing central custodian services for such instruments and performing other duties assigned by the CMB pursuant to the capital market legislation.
The activity principles of MKK is determined with the Regulation On The Establishment, Operation, Conduct And Audit Principles Of The Central Securities Depository issued by the CMB according to the article 81 of Capital Market Law.