Turkish regulator moves to prosecute 37 over fund-market manipulation, imposes trading bans

Turkey’s securities watchdog, the Capital Markets Board, has sought criminal prosecution of 37 persons tied to alleged stock-market manipulation in the recent investment-fund crisis, naming a former AKP parliamentarian, a former deputy governor of the central bank and the head of Tera Yatırım Holding. The board issued two-year trading bans and stripped 21 of the accused of their market licences, also prohibiting brokerages Tera Yatırım, Tera Portföy and Alnus Yatırım from dealing in Vişne Madencilik and Işıklar Enerji shares.

Following the September liquidation of 131 funds that left 455,758 investors awaiting repayment, the regulator authorized further liquidations of funds managed by Hedef Portföy and others. President Erdoğan declared the situation under control, highlighting repayment, prosecutions and market protection as priorities, while a parliamentary bill to allow interim investor payments up to 1 million lira moves toward final approval.

The probe has also implicated former ministers Mustafa Aksu and Fatma Betül Sayan Kaya, and the RTÜK fined Sözcü TV and Koza TV for coverage questioning officials. MSCI warned that continued opacity could trigger a downgrade of Turkey’s emerging-market status.