Turkey appoints banks to liquidate about 130 funds

The Capital Markets Board referred 38 people to prosecutors and appointed two public banks to carry out liquidation of about 130 investment funds, after sharp swings on Borsa Istanbul.

SPK refers 38 to prosecutors

Officials described the moves as a response to concentrated redemptions and rapid equity price swings; they did not provide a timetable for individual liquidations. Trading on Borsa Istanbul was volatile on Friday as the announcements were made, officials added, and market participants are monitoring turnover and price moves.

The immediate market effect is focused on equity liquidity and selective fund closures rather than a blanket market suspension. Asset managers with exposure to the affected funds will face redemption and valuation pressure, while the banks tasked with liquidation will determine orderly sell-down schedules and counterparty arrangements.

Watch for regulator statements and bank disclosures over the next 48 hours for details on which funds will be wound up and the timetable for auctions or asset transfers. Officials said they will publish further procedural guidance as the liquidation work proceeds.

Officials said the regulator opened a probe on suspected market manipulation and liquidity strains within a set of funds, and that the judicial referrals followed its initial inquiries. The action, the regulator said, includes assigning two public banks to manage the formal winding-up process for roughly 130 funds.