Key facts
- Nearly half a million investors are affected by the liquidation of Turkish investment funds.
- Authorities ordered the liquidation of over 100 Turkish investment funds worth approximately $18 billion.
- The number of individual investors affected is 455,758, according to central securities depository records.
- Steps were taken to boost lira liquidity and ease capital and margin requirements.
- An investigation has been widened into alleged violations of Turkey's capital markets law, criminal organization membership, and aggravated fraud.
Turkey's capital markets regulator announced on Wednesday that nearly half a million investors hold stakes in over 100 Turkish investment funds valued at approximately $18 billion, which authorities ordered to be liquidated last week during a market selloff. The Capital Markets Board (SPK) stated that 455,758 individual investors are affected, according to central securities depository records. In response to market volatility and fund struggles with withdrawals, Turkish authorities implemented measures to boost lira liquidity and ease some capital and margin requirements. Separately, prosecutors have expanded an investigation initiated after the SPK filed criminal complaints concerning transactions in shares of Turkish companies Katilimevim, Gundogdu Gida, and Destek Finans. Five individuals detained in connection with the probe were reportedly jailed pending trial on charges including violating capital markets law, criminal organization membership, and aggravated fraud.