Turkish regulators purge financial sector following stock manipulation scandal

Turkish authorities have launched a sweeping investigation into stock market manipulation, leading to the arrest of several high-profile financial executives and the suspension of 38 individuals. The Capital Markets Board (SPK) filed legal complaints against these individuals for irregularities involving stocks of Katilimevim, Gundogdu Gida, and Destek Finans Faktoring. Notable detainees include Muhammet Yariz of Pusula Portfoy, Altunc Kumova of Destek Holding, Ibrahim Bekci of Tera Portfoy, and Namik Kemal Gokalp of Hedef Holding. This crackdown triggered a severe market sell-off, prompting an emergency meeting of the Financial Stability Committee led by Minister Mehmet Simsek.

To restore investor confidence, the state has intervened by placing mutual funds managing over $18 billion and serving approximately 350,000 investors under the supervision of Isbank and Ziraat Bankasi. These institutions will oversee the gradual liquidation of assets to ensure proportional payouts to investors. While authorities have labeled the crisis a temporary liquidity issue, several other executives, including those from Tera Holding and Bulls Yatirim Menkul, remain subject to travel bans as the government continues its investigation to stabilize Borsa Istanbul.