Borsa Istanbul has removed factoring company Destek Finans Faktoring AS from its Borsa Istanbul 30 Index and Borsa Istanbul 100 Index. This decision is part of quarterly changes to the exchange's benchmarks and follows a crackdown by Turkish authorities on investment funds accused of running "Ponzi-like schemes." Finance company Katilimevim Tasarruf Finansman AS was also excluded from the Borsa Istanbul 100 Index.
Destek Finans shares had experienced an astronomical rise, soaring nearly 7,500% from its February 2025 IPO to its peak in July 2026. Its market value reached as high as 1.31 trillion lira despite only reporting a net income of 2.6 billion lira in the first half of the year. This rapid appreciation, along with similar gains in other thinly traded stocks, drew criticism from investors who argued these abnormal gains distorted the broader market's reflection.
The regulatory crackdown in August targeted fund strategies involving concentrated holdings in companies with limited free floats, forcing some managers to unwind positions. This led to a rush of cash out of investment funds in September, with some portfolios, including those managed by Tera Portfoy and Pusula Portfoy, unable to meet redemption requests. As a result, authorities seized 131 funds run by seven asset managers, which are now undergoing liquidation with significant stock losses.
Destek Finans was a particularly significant holding for the funds facing liquidation, with approximately 70 billion liras of its stock accounting for about 66% of its free float, according to a QNB Invest report. Destek's stock listing was managed by bankers at Tera Yatirim, and its shares were among the largest holdings of Tera's flagship fund. Destek Finans shares have since tumbled 34% in the past week, while Katilimevim, owned by Pusula Holding, slumped 68% this month. Earlier in May, global index provider MSCI Inc. had already removed Destek from its small-cap benchmarks due to concerns regarding its free float, transparency, and accessibility.
Authorities have also taken further action, detaining several high-profile finance executives, including Emre Tezmen, chairman of Tera Yatirim Menkul Degerler AS, and Emre Alkin and Kerem Alkin, board members. Pusula Holding Chairman Serdar Turhan was also detained, and local media reported the arrest of Destek Chairman Altunc Kumova, who holds a 74% stake in the company. In addition to Destek Finans and Katilimevim, Borsa Istanbul excluded a total of 27 stocks from its BIST 100 Index, including Pasifik Eurasia, Odine Teknoloji, Kiler Holding, and Isiklar Enerji.
