Istanbul — Turkey’s capital markets regulator said nearly 456,000 individual investors are affected by the liquidation of more than 100 investment funds following a recent market selloff.
The Capital Markets Board, known as the SPK, said Wednesday that 455,758 individual investors held stakes in the funds subject to liquidation. Their combined value is approximately $18 billion, according to the regulator.
The liquidations followed a period of financial-market stress in Turkey. Authorities have introduced additional measures intended to support financial stability, including actions to boost liquidity in the Turkish lira and reduce certain capital and margin requirements.
The measures came after some funds encountered difficulties meeting investor withdrawal requests during the selloff.
The developments have also prompted a broader investigation into trading activity involving several Turkish companies. The SPK had previously filed criminal complaints related to transactions involving shares of Katilimevim, Gundogdu Gida and Destek Finans.
Turkish authorities have since widened the investigation as they examine the circumstances surrounding the market activity.
Five people detained in recent days appeared in court on Wednesday and were jailed pending trial, according to Turkish media reports cited by Reuters.
Turkey’s justice ministry said those involved in the investigation face charges including violations of the country’s capital markets law, membership in a criminal organization and aggravated fraud allegedly committed by company executives or others acting for companies during commercial activities.
The justice ministry had not immediately commented on the court developments.
The number of affected investors underscores the extent of the disruption in Turkey’s financial markets. Hundreds of thousands of individuals hold stakes in the funds, meaning the liquidation process extends beyond the companies whose shares were at the center of the investigation.
Authorities have already implemented measures designed to maintain market functioning, particularly by providing additional lira liquidity and adjusting certain capital and margin requirements.
Investors will be watching the progress of the liquidation process as well as whether the regulatory investigation leads to further action against companies or individuals.
The episode has also drawn greater attention to Turkey’s financial-market safeguards as regulators contend with market volatility, fund withdrawal pressures and a widening investigation into securities transactions.
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