On September 16, 2026, Turkey’s benchmark BIST 100 index fell by 5.54% to close at 13,122.58. During the trading session, the index experienced a decline of up to 7.7%. This downturn followed a massive withdrawal of funds by retail investors, who pulled approximately $1 billion from local investment vehicles in a single day.
The crisis stems from new regulations introduced by Turkey’s Capital Markets Board. The rules restrict fund managers from holding large positions in illiquid, low-free-float stocks. These measures forced managers to sell assets, leading to a liquidity mismatch and triggering panic among investors.
Asset management firm Pusula Portföy, which oversees $13 billion in assets, defaulted on redemption requests on September 16. Tera Portföy also reported defaults totaling approximately 366 billion lira, or $7.5 billion. Since late August 2026, total outflows from Turkish funds have reached approximately $2.7 billion.
The Financial Stability Committee scheduled an emergency meeting for September 17 to address the situation. Potential measures under consideration include the implementation of temporary redemption gates, the creation of liquidity facilities, or the accelerated restructuring of the affected investment funds.
