Borsa Istanbul losses deepen as Tera fund defaults

Tera Portföy 2, a fund run by Tera Yatırım, entered default on the evening of September 17, 2026, officials said, after a day in which Borsa Istanbul registered heavy losses and investors withdrew from investment funds. Officials said the capital markets regulator filed a criminal complaint and imposed a travel ban on Emre Tezmen, chair of Tera Yatırım's board.

Tera chair travel ban

Officials said the regulator's actions came as liquidity in parts of the investment-fund sector tightened following large redemption flows earlier in the day. The default, officials added, heightened immediate redemption risk for funds with overlapping holdings and raised questions about short-term settlement strains on brokerage and custody services.

Market participants said equities with significant mutual-fund ownership could see outsized pressure if redemptions continue; officials cautioned that contagion would depend on how quickly managers meet obligations and whether counterparties extend short-term liquidity. If managers meet redemptions and sales stabilize, equity selling may ease; if outflows persist, price discovery could widen and smaller-cap stocks may face deeper declines.

Watch for regulatory follow-up and cash-flow reports from major fund managers by September 18, 2026, when officials have said they will update markets on the status of settlements and any further measures.