Turkey's Regulator Says 455,000 Investors Impacted by $18 Billion Fund Liquidation

Turkey’s capital markets regulator announced Wednesday that the mandatory liquidation of more than 100 investment funds, ordered amid a recent market selloff, affects 455,758 individual investors. The total value of the funds involved is approximately $18 billion.

Regulator's Disclosure

In a formal statement, Turkey’s Capital Markets Board (SPK) provided the specific number of affected individuals, citing data from the country's central securities depository. The announcement follows a decision by Turkish authorities last week to compel the liquidation of the funds after some struggled to meet investor withdrawal requests during a sharp downturn in the stock market.

This move was part of a broader set of actions aimed at shoring up the financial system. Authorities also implemented measures to boost Turkish lira liquidity and relaxed certain capital and margin requirements for financial institutions to ease market pressure.

Widening Criminal Investigation

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Separately, authorities have expanded a criminal investigation related to the market turmoil. The probe, initiated by prosecutors last week after the SPK filed criminal complaints, focuses on suspicious transactions in the shares of three Turkish companies: Katilimevim, Gundogdu Gida, and Destek Finans.

According to a statement from the justice ministry on Tuesday, individuals face serious charges, including:

• Violation of Turkey's capital markets law
• Membership of a criminal organization
• Aggravated fraud

Turkish media reported that five people detained in connection with the investigation appeared in court on Wednesday and were jailed pending trial, as confirmed by a Reuters report.