Turkey probes share trades in 31 firms amid sweeping investment fund scandal

Turkish prosecutors together with the Capital Markets Board are examining trading activity in the shares of 31 companies for possible market manipulation tied to the ongoing investment-fund scandal. The probe follows a September-mid crisis when numerous funds could not meet redemption requests, prompting the regulator to order the liquidation of 131 funds managed by seven firms. So far, 66 funds have been liquidated, returning cash and assets worth about 40.8 billion lira to more than 45,000 investors, while the remaining 65 are still being wound down.

Nine people have placed just over 2 billion lira into a voluntary repayment account overseen by the Savings Deposit Insurance Fund. The SPK has also asked prosecutors to charge 37 individuals, among them former lawmaker Fatma Betül Sayan Kaya, for suspected stock-market manipulation. A repayment bill cleared a parliamentary committee and is expected to allow interim payments of up to 1 million lira per eligible investor without using Treasury funds. The ruling AKP and its ally MHP have dismissed opposition calls for a broader inquiry, and the broadcasting regulator fined two TV channels for coverage of the scandal.