Five investment executives jailed as hundreds of thousands await fund liquidation payouts

A Turkish tribunal sentenced five senior figures from investment firms to jail on accusations of manipulating stock prices, adding three more Tera executives to the detention list and raising the total number of suspects to nine. The investigation focuses on alleged irregularities in shares of Katılımevim, a company associated with the Pusula finance group that offers savings plans for homes and vehicles. The Capital Markets Board confirmed that 455,758 investors have money tied up in 131 funds slated for liquidation, which together managed TL 891 billion before the shutdown.

The funds, unable to meet redemption requests, had to sell other holdings, contributing to broader market losses and an 8 percent drop in the main index. Trading in the funds was halted and the regulator extended the asset-sale deadline to six months, with two banks tasked with converting the assets into cash for investors, though the final payout per investor is still undetermined.