223 funds suspended from trading: Uncertain process begins for 1 million people
Trading in funds belonging to 7 portfolio management companies has been halted by a Capital Markets Board (SPK) decision. The process concerns a fund volume of 1.1 trillion liras.
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The measures taken by the Capital Markets Board (SPK) regarding funds based on certain stocks that have recently been in the spotlight due to unusual price movements on the stock exchange have caused a widespread reaction in the market. Under the decision, buying and selling transactions for a total of 223 funds belonging to Tera, Pusula, Hedef, Atlas, A1 Capital, Pardus, and Bulls Portföy have been suspended via TEFAS.
According to TEFAS data, the total size of the funds subject to the trading ban reaches 1.10 trillion liras. It is stated that the number of investors affected by the funds in question is 932 thousand. For this reason, the decision has turned into a significant source of uncertainty for individual investors as well.
FUNDS TO ENTER LIQUIDATION PROCESS
A liquidation process will be initiated for 130 of the suspended funds. It is stated that the total portfolio size of these funds is 826 billion liras. The largest share within the scope of liquidation belongs to Tera Portföy with 5 funds totaling 538 billion liras. These funds are known by the codes TLY, TP2, DOH, T3B, and TLV.
Liquidation means the closure of the funds, the conversion of assets in the portfolio into cash, and the distribution of the proceeds to the fund shareholders. However, the fact that the SPK has not yet announced a clear schedule regarding the method of liquidation and the payment calendar keeps the question of when investors will be able to access their money on the agenda.
It is assessed that if the funds' portfolios contain stocks with low trading volume and limited liquidity, the sales process could be prolonged. This means that for some investors, the time it takes to recover their principal may be longer than expected.
The decision does not only consist of funds to be liquidated. Some funds will remain closed to trading on TEFAS without being included in the liquidation list. In this context, it is reported that 6 funds, including the 142 billion lira THF-coded fund belonging to Tera, will not be liquidated but their transactions will continue to be suspended.
In order to prevent the deepening of the cash crunch in the market, the SPK also announced a temporary flexibility for leveraged transactions. The equity ratio in leveraged transactions, which is normally applied at a minimum of 35 percent, can be reduced to a minimum of 20 percent until the end of the session on October 2, 2026, depending on the brokerage firms' own risk assessments.
The decisions regarding the funds are expected to become clearer in the coming days with both the steps to be taken by the portfolio management companies and any possible announcements the SPK may make regarding the liquidation calendar.