The Capital Markets Board of Turkey (SPK) has ordered the liquidation of 131 investment funds following allegations of share-price manipulation and Ponzi-like practices. The decision, announced on September 17–18, impacts approximately 350,000 investors and involves assets totaling $18.3 billion, or about 890 billion Turkish liras.
The affected funds were managed by seven companies: Tera Portföy, Hedef, Atlas, A1 Capital, Pardus, Bulls, and Pusula. These firms reportedly invested in thinly traded stocks, artificially inflating share prices to attract new capital. When investor redemptions surged, reaching $1 billion in a single day, the underlying assets could not sustain the pressure.
In response to the crisis, the SPK suspended trading on the TEFAS platform and filed criminal complaints, leading to the detention of executives from Tera and associated firms. During the market turmoil, Turkey’s benchmark BIST 100 index fell by 6–8%.
The SPK has appointed Isbank and Ziraat Bank to oversee the liquidation process starting September 18. These institutions are tasked with converting fund holdings into cash and distributing the proceeds to investors within a three-month window, though this period may be extended if necessary.
