Turkey plans to lift the ban on short selling of stocks to boost market attractiveness.

Insiders revealed on Monday that Turkish officials plan to allow the short-selling ban to expire at the end of the month, in a bid to enhance the attractiveness of the country's stock market to foreign investors. Turkish authorities expanded the existing short-selling ban in March this year to limit market volatility sparked by the arrest of Istanbul mayor Ekrem Imamoglu on corruption charges - a move that led to the imprisonment of Turkish President Erdogan's most powerful political rival. After three extensions, the short-selling ban is set to expire on August 29. Two sources familiar with the matter said that the recent surge of the country's benchmark index to a historic high and the central bank's decision to restart the rate-cut cycle were among the other considerations for this decision. Insiders stated that lifting the ban is expected to increase trading volume and market depth, while also boosting attractiveness to foreign investors. The country's regulatory authority also plans for other measures, including easing buyback rules, to expire naturally.