Shock Decision from BIST for DAGI and NETAS: Short Selling Banned

Important Measures from Borsa İstanbul on Two Stocks: Ban on Short-Selling and Credit Transactions

Borsa İstanbul A.S. is on the agenda with preventive measures to protect market integrity and ensure that investors can trade healthily. As a result of the latest reviews, new restrictions were imposed on the shares of the two companies under the Volatility Based Measure System (VBTS). This decision will have significant consequences for market-traded investors and related companies.

According to the decision announced through official channels, Dagi Clothing Industry and Trade Inc. (#DAGI .E) and Netas Telecommunications Inc. (#NETAS .E) short selling and credit transactions are prohibited, effective until trading on 26 September 2025 (until the end of the session) starting from 27 August 2025 (from the beginning of the session). This means that certain types of transactions on the shares in question cannot be carried out for a period of about a month.

What is a Volatility Based Measurement System (VBTS) and Why Is It Applied?

Volatility Based Measure System (VBTS) is a proactive tool used by Borsa Istanbul to prevent excessive price movements and speculative transactions, maintain market integrity and ensure investor confidence. The system automatically detects unusual volatility (volatility) that occurs in the market according to certain criteria and activates preventive measures in these cases.

The measures that can be applied under the VBTS are quite diverse. These include restrictions of different levels, such as a ban on short selling, a ban on credit transactions, gross swap, a single price trading method, an order package measure, and restriction of entry of limit price orders with a market order. Each measure is determined based on the volatility of the share involved and market conditions. These decisions are usually communicated to investors through official statements made via the Public Enlightenment Platform (KAP).

The main objective of the system is to prevent short-term and manipulative movements, contributing to a healthier formation of stock prices over fundamental values. It aims to prevent panic selling or overbuying from disrupting the market balance, especially during periods of high volatility. Thanks to this, it is intended to protect small and medium-sized investors from sudden and large fluctuations.

Meaning of the Short Selling Ban and its Effects on the Market

Shorting is the process of an investor selling a security (stock) that he does not own by borrowing and then closing the debt by taking it back when the price falls. The expectation of making a profit from this transaction is usually based on expectations that prices will fall. It is a preferred method for investors with bearish expectations in the market, and while it can contribute to liquidity, it can also put downward pressure on stock prices when it intensifies.

The imposition of a short sale ban on a stock is intended to prevent the expectation of excessive falls in the price of that stock or speculative pressure. This measure plays a critical role in preventing a bearish stock from depreciating even more rapidly, stabilizing the market and stopping possible manipulative movements. The ban on short selling directly affects the supply-demand balance of the stock, removing some of the selling pressure. This could allow stock prices to move on a more stable footing.

For shares of companies where the ban is imposed, the ability of investors to take bearish positions is restricted. This, in turn, often creates some relief for existing shareholders, while it may require a change of strategy for investors with short-term downside expectations. For market professionals, this is an important factor to consider in terms of risk management and portfolio adjustments.

Scope of the Credit Transaction Prohibition and its Implications for Investors

A credit transaction is the process in which investors acquire securities by borrowing money from a brokerage firm. This method offers investors the opportunity to open positions larger than their own capital, increasing the earning potential. However, it also multiplies the risk of losses in price movements in the opposite direction, increasing it. Due to the fact that it is a leveraged type of trading, it is more sensitive to fluctuations in the market.

Imposing a credit trading ban on a stock means blocking leveraged trades that can trigger excessive rises or falls that may occur in the price of that stock. High credit trading volume can drive the price of a stock up or down faster than expected, which holds great risks for investors, especially in volatile markets. The ban on credit transactions aims to reduce the speculative leverage effect in the market and prevent investors from taking uncontrolled risks.

This measure plays an important role in preventing especially small investors from suffering unexpected losses with high leverage. At the same time, it prevents excessive demand in the market from swelling with credit transactions, contributing to the formation of a more realistic price. Dagi Clothing (#DAGI .E) and Netas Telecom (#NETAS .E) This ban imposed on shares may reduce the purchasing power of these shares somewhat, while encouraging more cautious and equity-based transactions. This can help to establish a healthier balance in the market.

Expectations and Investor Strategies on DAGI and NETAS Shares

Dagi Clothing Industry and Trade Inc. (#DAGI .E) and Netas Telecommunications Inc. (#NETAS .E) These measures applied to their shares may have significant effects on market dynamics in the short term. A ban on short selling can reduce bearish speculative pressure on stocks, preventing prices from falling faster, especially in the event of potential bad news feeds. The ban on credit trading, on the other hand, means that investors who want to open positions in the stock using leverage are deprived of this opportunity. This can lead to a certain decrease in trading volume in both stocks, as speculative and leveraged trades can account for a significant portion of the volume.

Investors during these measures DAGI.E and NETAS.E It is important to re-evaluate their strategies for their shares. Although the measures do not have a direct impact on the fundamental values of stocks, they can be decisive on market psychology and short-term price movements. Investors are advised to take into account the impact of these measures on their overall strategies by taking a closer look at the companies' financial statements, their position in the sector and future prospects.

After September 26, 2025, which is the expiration date of the measures, the market's interest in these stocks and how the trading dynamics will change is another issue that needs to be closely monitored. Usually, when the measures end, a certain mobility can be observed in the market, but its direction and severity will depend entirely on market conditions and company-specific developments.

The Importance of Market Integrity and Investor Protection

Such preventive measures taken by Borsa Istanbul are of great importance for the basic functioning of the capital markets. Market integrity ensures that all participants can trade on fair and transparent terms. Such prohibitions aim to provide a more orderly and predictable environment by curbing the excessive movements of the market in certain periods.

Investor protection, on the other hand, plays a vital role in preventing small and medium-sized investors from being adversely affected by the speculative maneuvers of large and institutional players. The active use of the Volatility-Based Measure System shows that Borsa Istanbul prioritizes the interests of investors and strives to create a healthy growth environment in the market. In this way, confidence in the capital markets is increased and the participation of more individual and institutional investors in the market is encouraged.

As a result, Dagi Clothing (#DAGI .E) and Netas Telecom (#NETAS .E) The bans on short selling and credit transactions imposed for its shares are a reflection of Borsa Istanbul's continued efforts under market surveillance and supervision. It is essential for investors to follow such news carefully, consider current market conditions and regulatory practices when making investment decisions, is essential for successful portfolio management.