Business · Markets · 5 hrs ago
Turkey probes $8.1 billion in fund withdrawals before regulator action
Turkey’s prosecutors are investigating whether 440 investors received non-public information before withdrawing 401.3 billion lira, or $8.1 billion, from investment funds between September 1 and 16.
The withdrawals came before Turkey’s securities regulator ordered 131 funds managed by seven companies to be liquidated on September 17.
Some funds had invested in stocks that were hard to sell as prices fell and investors sought their money back.
The withdrawals are not, by themselves, proof that investors did anything wrong.
Investigators are also examining suspected share price manipulation, while accounts linked to 141 people and 73 companies have been frozen.
The state agency handling recovery of gains has begun asking people on its list to return money, which is intended to help pay investors who lost money.
A bill awaiting a parliamentary committee review would allow interim payments of up to 1 million lira per investor, and payments could begin this month if lawmakers approve it.
Turkish prosecutors are investigating whether investors received advance warning before withdrawing 401.3 billion lira ($8.1 billion) from investment funds.
The İstanbul Chief Public Prosecutor’s Office is examining transactions by 440 investors between September 1 and 16.
Turkey’s securities regulator ordered 131 funds managed by seven companies to be liquidated on September 17, affecting 455,758 investors.
The withdrawals alone do not establish wrongdoing, and investigators are examining suspected share price manipulation.
Vice President Cevdet Yılmaz said investor payments would come from fund assets and recovered gains, not public money.
- Who
- The İstanbul Chief Public Prosecutor’s Office is investigating transactions by 440 investors.
- What
- Prosecutors are examining whether advance tipoffs helped investors withdraw 401.3 billion lira ($8.1 billion) from investment funds before regulatory action.
- When
- The transactions under review took place between September 1 and 16. The regulator ordered fund liquidations on September 17.
- Where
- Turkey, including İstanbul.
- Why
- Investigators are seeking to establish whether investors acted on information that had not been made public and are also investigating suspected share price manipulation.
Government and ruling-party figures
Opposition parties
Names of investors and companies
Government and ruling-party figures
Abdullah Güler defended withholding the names of 214 people and companies, citing privacy protections and the presumption of innocence.
Opposition parties
Opposition proposals sought scrutiny of the scandal, including its political connections.
Parliamentary inquiries
Government and ruling-party figures
AKP lawmakers and their MHP allies rejected five opposition proposals to advance parliamentary inquiries.
Opposition parties
Opposition lawmakers proposed parliamentary inquiries into the scandal.
Prosecutors are examining transactions by 440 investors during this period.
The Capital Markets Board ordered the liquidation of 131 investment funds managed by seven companies.
AKP lawmakers and their MHP allies rejected five opposition proposals to advance parliamentary inquiries into the scandal.
Abdullah Güler defended withholding the names of 214 people and companies, citing privacy protections and the presumption of innocence.
Prosecutors announced an investigation into people who shared confidential documents from the fund inquiry on social media.
- Withdrawals under review
- 401.3 billion lira ($8.1 billion)
- Investors examined
- 440
- Tera fund withdrawals
- 335.9 billion lira ($6.8 billion)
- Pusula fund withdrawals
- 65.4 billion lira ($1.3 billion)
- Funds ordered liquidated
- 131, managed by seven companies
- Investors affected by liquidations
- 455,758
What people are saying
We attach importance to the presumption of innocence
Sources
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