Turkish authorities have frozen assets belonging to executives at several investment firms, including Tera Yatirim Menkul Degerler AS, Pusula Finans Holding AS, Hedef Holding, and Bulls Portföy Yönetimi. This action is part of a widening investigation into a crisis within the country's fund industry, which has seen redemption failures, arrests, and significant stock market declines. Justice Minister Akin Gurlek announced these measures, which also restrict asset transfers by board members, signatories, and some of their relatives without prosecutorial approval.
The crisis originated in August due to stricter regulations on equity funds with concentrated positions in thinly traded stocks, leading to forced selling. Last week, funds managed by Tera Portföy and Pusula Portföy announced their inability to meet redemption requests. The Capital Markets Board subsequently filed criminal complaints against 38 individuals for alleged share manipulation and imposed two-year trading bans. As a result of the turmoil, Turkish investment funds lost 510 billion liras (approximately $11 billion) in assets between the end of August and September 18.
On Monday, the Borsa Istanbul 100 Index fell 2.6% by 10:09 a.m. Istanbul time. The previous week, the Borsa Istanbul All Shares Index had dropped 10%, erasing about $51 billion from the value of Turkish stocks, marking the largest weekly decline since March 2025. The Capital Markets Board also halted trading in funds of seven managers and ordered the liquidation of 131 funds, a process overseen by Türkiye İş Bankası and Ziraat Bankası. The liquidation period has been extended from three to six months to facilitate sales under the most favorable conditions.
Police have made multiple arrests and detentions in connection with the probe. Pusula Portföy Chairman Muhammed Yariz was arrested, and Hedef Holding Chairman Namik Kemal Gokalp, Destek Holding's majority owner Altunc Kumova, and Tera Portföy Deputy Chief Executive Ibrahim Bekci were detained. Over the weekend, Tera Holding Chairman Emre Tezmen, board members Emre Alkin and Kerem Alkin, and Pusula Holding Chairman Serdar Turhan were also detained. Additionally, 51 individuals have been barred from leaving the country.
