1. Stock Transfer Transactions

The operation of Stock Transfer Transactions between members vary in respect of whether the security, which will be transferred, is dematerialized or not. Dematerialized transfers vary according to institutions being party to the transfer.

1.1. Physical Transfer Transactions

Within the context of dematerialization; although the stocks kept in accounts by Takasbank were transferred to accounts opened with CRA, the non- dematerialized stocks are still kept in custody accounts with Takasbank. The brokerage houses can transfer the said securities again to the physical custody account of another institution.

Physical transfer transactions take place in Takasbank system in two stages being entry and approval by using access number-password.

1.2. Dematerialized Transfer Transactions

As dematerialized custody accounts are kept by CRA, the operation of transfer transactions vary according to the parties of the transaction. With respect to operation the transfer transaction is classified as;

• From Brokerage House to Brokerage House
• From Brokerage House to Fund/Investment trust
• From Fund/Investment Trust to Brokerage House

Transfers from Brokerage House to Brokerage House; Brokerage houses, which are members of the CRA, execute their dematerialized stock transfers within the CRA system. There are no messages sent between Takasbank system and the CRA system with respect to the transactions.

Transfers from Brokerage House to Fund/Investment Trust; As Takasbank is a natural member of CRA due to its function as settlement and custody institution, Takasbank is defined under the CRA system with TVS member code. Therefore, the accounts opened on behalf of funds/trusts have the nature of being a customer account in the CRA system under Takasbank membership (to be opened in detail in fund/trust custody account class) and the custody accounts of funds/trusts held in Takasbank are followed in these accounts. Consequently when the brokerage houses want to make free transfer to investment funds/trusts, they state TVS member as the counter party and fund/trust code as the related customer. The transfer information coming to the fund/trust accounts held in the CRA under TVS member are transmitted to Takasbank by the CRA. According to such information, the entries are made to the fund account in Takasbank system.

Transfers from Fund/Investment Trust to Brokerage House; For the transfers which will be made from Fund/Trust account to Brokerage Houses, the instruction entry and approval transactions are performed in Takasbank system. For transfer records which passed the controls, a message is sent to the CRA system corresponding to the execution of the transfer. After performing the controls relating to the free transfer are made in the CRA system, a message regarding the result of the transaction is delivered to Takasbank system.

The transfer, which will be made from the fund/trust account, can be implemented by the fund/trusts through using Takas screens as well as giving a paper-based instruction to Takasbank.

In the case that the transfer transaction is required to be realized by a paper-based instruction and the settlement debt is purposed to be covered with transferred securities, then the paper-based instruction has to be sent to Takasbank on settlement day until 14:45 the latest.

The funds/trusts have to sign the transaction commitment letter and deliver to Takasbank in order to execute the transfer transactions via Takasbank system.

The funds/trusts having delivered the transaction commitment letter to Takasbank can make transfer to the counter party’s account through accessing to Takasbank system and using the access numbers generated with the user codes and passwords received from Takasbank. The transfer transactions have been regulated as two-phased being entry and approval with respect to the safety of the system and there is a requirement to use an access number for each transaction. The user codes and passwords, which are used to generate the access numbers and prepared for two users respectively, are given to the personnel who are authorized to transact or persons who are empowered by those in written, by Takasbank in closed envelopes.

The transfer records are automatically constituted on security basis according to contract information of transactions executed by brokerage firms on behalf of fund/trust. Transfers of fund/trust are made by the approval of transfer records, constituted from contract information in order to have controlled exits from the accounts. When an exit from the fund account other than the said records is required , the transfer instruction entered by the fund is submitted to Takasbank’s approval. Approval is requested by the Fund Board or the Founder of Fund with the explanation of transfer which is required to be made except for the sales transaction. Takasbank approves the transfer or rejects it.

Free transfer transactions can be realized via Takasbank system until 21:00.

2. Bonds and Bills Transfer Transactions

2.1. Transfer between depots

The members can make transfer through remote access from their own depot accounts with Takasbank having exit authority, to their own depot accounts, having entry authority. The transfer is executed in one phase and no access number is used. Transfers originating from collateral depositing-drawing are executed via screens in market menus where the collateral is deposited or transaction-specific menus.

2.2. Transfer between members

The members, having delivered cash securities, collateral and RTG DvP Settlement and Electronic EFT Instruction Commitment Letter to Takasbank, can access Takasbank system and make transfer to counter party’s depot account with entry authority from their depot accounts with exit authority by using the access numbers generated from the user codes and passwords received from Takasbank.

The transfer transactions have been regulated as two-phased being entry and approval with respect to the safety of the system and there is a requirement to use an access number for each transaction. The user codes and passwords, which are used to generate the access numbers and prepared for two users respectively, are given to the personnel who are authorized to transact or persons who are empowered by those in written, by Takasbank in closed envelopes.

2.3. Investment Fund, Private Pension Fund, Exchange Traded Fund and Investment Trust Transfer

The transfers, which will be made from the investment fund, private pension fund, exchange traded fund and investment trust accounts, are realized in a controlled manner. For this purpose, a transfer entry record, equivalent to the total sales amount for each security which is realized on behalf of the fund by each bank and brokerage firm that acts as intermediary for buy-sell transactions of investments funds and trusts in the ISE Bonds and Bills Market, is automatically created by the system after netting. The transfer entry records created by the system can be partially or wholly realized by the fund/trust. As the transfer records relating to the sales of securities with foreign currency payout are constituted in the morning of the value day, the transfer can be executed without waiting for netting transaction.

Securities transfer from the fund account due to reasons such as exchange bid, securities lending/borrowing transaction, return of collateral etc., can only be made with the original of the paper-based instruction sent by the fund board or the founder of the fund. The entry and approval phases of the security, which is required to be transferred, are performed by the related fund users. Transfer transaction will be realized upon second approval given by the related unit of our bank. For these transactions the rules stated in the section 2.2 Transfer between Members are applicable except for cases where entry record is automatically constituted by the system.