Almost 456,000 investors are affected by the liquidation of more than 100 Turkish investment funds worth about $18 billion, following a sharp sell-off that exposed liquidity problems in the country’s financial markets.
Turkey’s Capital Markets Board said on Wednesday that 455,758 individual investors hold stakes in the affected funds, citing records from the country’s central securities depository. Authorities ordered the liquidation of the funds last week after some struggled to meet investor withdrawal requests during the market turmoil.
The intervention came after Turkey’s benchmark BIST-100 index fell more than 8% last week, its steepest weekly decline since March 2025. Regulators responded with measures to support financial stability, including increasing lira liquidity and easing some capital and margin requirements.
Authorities have also expanded an investigation into transactions involving shares of Katilimevim, Gundogdu Gida and Destek Finans. The Capital Markets Board previously filed criminal complaints over alleged market manipulation involving 38 individuals and imposed trading bans.
Five people detained in recent days appeared in court on Wednesday and were jailed pending trial, according to Turkish media reports. The charges include alleged violations of capital markets law, membership of a criminal organisation and aggravated fraud.
The developments have intensified scrutiny of Turkey’s stock market structure and the ability of investment funds to meet redemption demands during periods of extreme volatility.
Leave a comment