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Türkiye’s capital markets regulator has extended a ban on short selling in equities trading on Türkiye’s stock exchange, Borsa Istanbul, keeping the restriction in place until the end of the April 10 session as part of measures aimed at limiting market volatility following the Iran war.
The decision was announced by the Capital Markets Board of Türkiye, which said the ban will continue to apply across the equity market of Borsa Istanbul.
Short selling is a trading strategy where investors sell borrowed shares expecting prices to fall, then buy them back at a lower level.
Authorities often restrict it during volatile periods, as it can increase downward pressure on markets.
In its statement, the regulator confirmed that additional measures introduced alongside the ban will also remain in force. These include a temporary easing of equity requirements for margin trading in capital markets transactions.
The steps were reintroduced in early March as authorities moved to contain the effects of the ongoing Iran war on financial markets.
The short-selling restriction had previously been put in place in March 2025 to ease pressure on markets but expired on Aug. 29, 2025, as improving conditions led authorities not to extend the measure. Short selling resumed after that date until the regulator reimposed the ban.
The benchmark BIST 100 index started the year with strong momentum, climbing nearly 30% from January levels to reach an all-time high of 14,532.67 points, outperforming major global indices following gains in South Korea’s Kospi index.
The rally was driven by an ongoing easing cycle by Türkiye’s central bank but later lost pace as inflation risks rose due to surging food prices after adverse weather triggered a supply shock.
Inflationary pressures were further compounded by the start of the Iran war and the effective closure of the Strait of Hormuz, which pushed global energy prices higher, with Brent crude rising above $100 per barrel.
In response, the Central Bank of the Republic of Türkiye (CBRT) suspended one-week repo auctions, lifting funding costs to around 40% from the 37% policy rate. The bank also paused its easing cycle at its March meeting.
Amid these developments, the BIST 100 index fell by 10% in March, dropping to 12,698.19 points from 13,717.81 points.
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