Turkey has lifted asset restrictions on 45 companies and 19 investment funds amid a market investigation affecting more than 450,000 investors. The move follows the resignation of ruling AK Party deputy chair Fatma Betül Sayan Kaya, who stepped down after allegations about share sales before a sharp stock-market decline.
The Istanbul Chief Public Prosecutor’s Office said the restrictions were removed after a new assessment by Turkey’s Capital Markets Board, known locally as the SPK. Restrictions on individuals linked to the investigation remain in place.
Authorities ease restrictions on companies and funds
Turkish prosecutors had imposed asset restrictions over the weekend as part of an investigation into suspected market manipulation involving investment funds. Justice Minister Akın Gürlek said authorities had initially frozen the assets of 46 legal entities, 18 funds and 42 individuals.
Following the Capital Markets Board’s review, restrictions on 45 companies and 19 funds were lifted. The decision does not end the wider investigation, and measures affecting individuals have not been removed.
Treasury and Finance Minister Mehmet Şimşek said protecting investment, employment, production and exports remained a priority. He added that legal proceedings would continue against those found to have distorted the market, while companies and people not connected to wrongdoing should not face action.
Why the Turkish investment fund crisis matters
The crisis concerns investment funds valued at more than $18 billion (€15.7 billion), according to media reports. More than 450,000 investors hold stakes in funds that are now being liquidated.
The disruption intensified after tighter rules introduced by the Capital Markets Board on 28 August were followed by withdrawals from several funds. Some funds held substantial positions in shares that were not traded frequently. That made it difficult to sell assets quickly without placing further downward pressure on prices.
As funds struggled to meet withdrawal requests, selling accelerated. Turkish stocks fell sharply on 15 and 16 September amid allegations that share prices had been artificially inflated.
On 17 September, the Capital Markets Board ordered the liquidation of 131 funds connected to Tera, Pusula, Hedef, Atlas, A1 Capital, Pardus and Bulls Portfolio. The Istanbul Chief Public Prosecutor’s Office subsequently opened an investigation into the circumstances surrounding the market turmoil.
What investigators are examining
Authorities are investigating whether the valuations of some funds were artificially inflated and whether market manipulation took place. At least 45 people have been arrested as part of the inquiry, although an investigation or arrest does not itself establish criminal responsibility.
The case highlights the risks created when funds hold large positions in thinly traded shares. If many investors seek to withdraw money simultaneously, managers may be forced to sell into a falling market, potentially worsening losses and increasing pressure on other funds.
Ruling-party official resigns amid share-trading allegations
The asset-freeze decision came after Fatma Betül Sayan Kaya resigned as a deputy chair of President Recep Tayyip Erdoğan’s AK Party. Erdoğan, who also chairs the party, accepted the resignation, according to AK Party spokesman Ömer Çelik.
Kaya previously served as Turkey’s family and social affairs minister from 2016 to 2018. She said she was stepping down so allegations concerning her share transactions could be clarified.
Opposition New Party spokesman Zeynel Emre alleged that Kaya sold shares worth approximately 1.3 billion Turkish lira, equivalent to about €23.3 million, shortly before the market fell. He also claimed that she had acquired the shares, many of them in shipbuilding company Özata Denizcilik, for around 63.4 million lira, or approximately €1.1 million, in April.
Emre questioned whether Kaya had advance knowledge of the impending market turmoil. Kaya has not directly responded to the allegations. The claims have not been established as fact, and the investigation remains ongoing.
Political and economic implications
The case has created pressure for Turkish authorities to demonstrate that the investigation is being conducted consistently and independently. The decision to release companies and funds from asset restrictions may reassure investors that measures are being reviewed individually rather than applied indefinitely.
At the same time, the continued restrictions on individuals and the liquidation of 131 funds show that the wider regulatory response is still active. Investors will be watching for further information about the liquidation process, the treatment of fund assets and any findings concerning suspected manipulation.
The developments are primarily a matter of Turkish financial regulation and domestic politics rather than an EU decision. However, Turkey’s markets are relevant to European investors, banks and companies with commercial exposure to the country. Any prolonged instability could also affect confidence in cross-border investment and regional financial activity.
What happens next?
The Istanbul Chief Public Prosecutor’s Office is expected to continue examining suspected market manipulation and the conduct of people connected to the affected funds. The Capital Markets Board will remain responsible for regulatory assessments and the liquidation process.
Key issues to watch include:
- Whether further asset restrictions are lifted or imposed.
- How the 131 fund liquidations are managed.
- Whether prosecutors announce formal charges or additional arrests.
- Whether investigators identify evidence supporting or rejecting the allegations about share trading.
- How authorities protect investors who hold stakes in the affected funds.
The lifting of restrictions on dozens of companies and funds is therefore a limited step, not a conclusion to the investigation. The central question remains whether the market turmoil resulted from structural liquidity pressures, unlawful manipulation or a combination of factors. Until authorities complete their work, allegations involving individuals should be treated as unproven.
