Turkey Says Nearly Half a Million Investors Affected by Funds Liquidation
The regulator said the funds held about $18 billion and affected nearly half a million investors as authorities widened a market manipulation probe.
- On Thursday, Turkey's Capital Markets Board ordered the liquidation of 131 investment funds, appointing Ziraat Bank and Isbank to oversee an orderly wind-down of assets across seven management firms including A1 Capital, Atlas, Bulls, Hedef, Pardus, Pusula Holding, and Tera Portfoy.
- Alleged market manipulation and liquidity problems triggered the crisis in late August, prompting the SPK to file criminal complaints over transactions exhibiting unexplained price movements inconsistent with financial realities.
- Finance Minister Mehmet Simsek stated on Friday the crisis is contained, representing about 10% to 11% of total fund assets, with approximately $18bn involved in the wind-down.
- Justice Minister Akin Gurlek announced a sweeping crackdown: four fund executives and 16 social media manipulators arrested, 51 individuals placed under travel bans, and 246 social media accounts blocked for spreading panic.
- Banks face a three-month deadline to convert assets into cash, but with approximately 60% of portfolios locked in illiquid and inflated equities, analysts question how much value can be salvaged for investors.
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116 Articles
Anyone who invests their money in Turkey wants one thing above all else - for it to retain its value. And this is not easy at all in the context of inflation, which is reaching 30 percent. Therefore, many, who are already struggling with the consequences of the economic crisis, buy gold, currency or stocks, and increasingly also shares of exchange-traded funds that promise high returns. But it is the stock market that has become a trap for many …
Almost half a million investors are affected, there were arrests and a politician of the ruling party resigned: what is behind the manipulation scandal in Turkey?
Erdogan says Türkiye’s financial system insulated from investment fund turmoil
Ankara, Sept. 29 (SANA) Turkish President Recep Tayyip Erdogan said Monday that problems affecting part of the country’s investment fund market posed no broader threat to the financial system, as authorities investigate suspected market abuses and liquidate more than 100 funds. “The Turkish financial system is strong,” Erdogan said after chairing a Cabinet meeting in […]
In Turkey, several investment funds that had attracted hundreds of thousands of savers are now unable to respond to their withdrawal requests. The authorities ordered the liquidation of 131 funds in an attempt to avoid further destabilization of the Istanbul Stock Exchange.
False fund valuations are said to have generated billions of dollars on the Turkish stock exchange. Assets have been frozen, and there have been more than 40 arrests.
In Turkey, many people have been arrested for alleged manipulation of stock exchange prices. According to reports, there are also many small investors among those affected. The Turkish government declares that there is no risk to the country's economy.
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