Key facts
- Turkish authorities detained 15 people on Monday in an investigation into transactions involving shares of Katilimevim.
- Prosecutors launched legal proceedings against 25 suspects in the Katilimevim investigation.
- The Capital Markets Board filed criminal complaints against 38 people over alleged manipulation of Katilimevim shares.
- Assets of executives at nine investment firms, including Pusula Finans Holding and Hedef Holding, were frozen.
- Authorities ordered strict monitoring of transactions by board members, authorised signatories, their spouses and close relatives.
Turkish authorities detained 15 people on Monday as part of an investigation into alleged share price manipulation involving Katilimevim, a listed savings financing company. Justice Minister Akin Gurlek stated that prosecutors have launched legal proceedings against 25 suspects, with 10 still at large.
The Capital Markets Board had previously filed criminal complaints against 38 individuals last week for suspected manipulation of shares in Katilimevim and two other listed companies, imposing two-year trading bans on them. These detentions are part of a broader effort to address suspected share price manipulation that has contributed to a liquidity crisis within Turkey's investment fund industry, leading regulators to freeze numerous funds and order their liquidation.
In addition to the detentions, authorities froze financial and asset transactions linked to executives and officials of nine investment firms: Pusula Finans Holding, Pusula Yatirim Menkul Degerler, Tera Yatirim Menkul Degerler, Tera Portfoy Yonetimi, Hedef Holding, Hedef Portfoy Yonetimi, Bulls Yatirim Menkul Degerler, Bulls Portfoy Yonetimi, and Ufuk Yatirim Yonetim ve Gayrimenkul. The government has instructed banks, notaries, land registry authorities, and the financial crimes watchdog MASAK to prevent the transfer or reduction of assets under investigation. Strict monitoring of transactions by board members, authorised signatories, their spouses, and close relatives has also been ordered, requiring prosecutorial clearance for any asset-reducing transactions.