Article 46/A –The Investors' Protection Fund having legal entity has been established with the objective of meeting the liquidation expenses and to carry out the functions provided for in Article 46/B in accordance with the principles envisioned in this law with respect to intermediary institutions for which a gradual liquidation or bankruptcy decision is made and, on the condition that the provisions of the Banks Law are reserved, the banks in the scope of paragraph (a) of Article 50 of this law the operations of which are stopped by a decree of the Council of Ministers, to cover the cash payment and share delivery obligations arising from share transactions for their customers due to capital market operations and transactions in which they engaged. All intermediary institutions are required to participate in this Fund.

         The Fund shall be administered and represented by the Central  Registry Organization which has the function of keeping the records of capital markets instruments. The management and operating principles of the Fund shall be determined with a regulation that shall be promulgated by the Board.

         The Board is authorized to examine and audit the accounts and transactions of the Fund and to request all kinds of information with respect to such matters. The Board, according to the results of the examination and auditing, may request from the Fund the execution of the matters which it deems necessary and when needed, it may request the Related Minister to transfer the management of the Fund to the Board. The Related Minister is authorized to make a decision to transfer the management of the Fund temporarily or permanently.

         The Fund is not subject to the provisions of State Bidding Law No. 2886 and General Accounting Law No. 1050 from the aspect of counter-signatures and official registration and the Supreme Council of Public Accounts Law No. 832. The Fund shall be audited by the Supreme Council of Public Accounts. The income and transactions of the Fund are exempt from all kinds of taxes, stamp dues and expenses.

         The revenues of the Fund are composed of:

         a) Annual dues to be deposited by the intermediary organizations,

         b) Administrative fines imposed by the Board, the exchanges on which securities are traded, and the Association of Capital Market Intermediary Institutions of Turkey,

         c) Temporary dues for which the amount is determined by the Board,

         d) The yield of the Fund assets,

         e) From other revenues.

         The dues in subparagraph (a) above must be deposited in the Fund account by the end of the second month of the related year and the temporary dues within the period determined by the Board. A fine for delay shall be applied to dues not deposited within these periods at the rate that shall be determined by the Board provided that it does not exceed three fold of the increase in the Consumer Price Index of the State Institute of Statistics for the previous month for each month.

         The amount of annual dues that shall be deposited to the Fund by intermediary institutions shall be determined by the Board in a manner that shall not exceed one per thousand of the monetary amount of the annual share transaction volume. The Board is authorized to request that payments  are made at rates determined separately according to the type and risk situations of the intermediary institutions, provided that it does not exceed this maximum amount.

         In case the assets of the Fund are not sufficient to meet the needs, then dues that shall be paid for subsequent years shall be paid on account up to one per thousand of the monetary amount of the share transaction volumes for the previous year shall be paid temporarily. If the dues received from intermediary institutions are not sufficient to meet the needs, then an advance shall be given to the Fund by the Istanbul Stock Exchange for the remaining portion.

         The assets of the Fund may not be used as security, may not be shown for guarantees, and may not be sequestered by third parties.

         The principles and methods of use of the Fund assets, the conditions for temporary dues on account and repayment of advances and other subjects shall be determined  with a regulation promulgated by the Board.