Global index provider MSCI has announced that it has temporarily halted certain index changes regarding Turkish stocks. It was reported that the decision is effective immediately and will remain in force until a new announcement is made.
In its statement, MSCI noted that within the scope of the 2026 Market Classification Review, there are serious concerns regarding potential coordinated transactions that could be carried out through shares owned by funds closely associated with certain small-cap publicly traded companies in Turkey.
According to the index provider, such transactions could undermine the reliability of calculations regarding the free-float rates of shares and pose a risk to market integrity. For this reason, MSCI emphasized that investors' expectations for a more transparent and auditable structure persist.
WHICH TRANSACTIONS HAVE BEEN SUSPENDED?
Within the scope of the freeze decision, certain changes resulting from index reviews or corporate actions will not be applied to Turkish stocks. MSCI stated that it will not increase the Foreign Inclusion Factors (FIF) or the Number of Shares (NOS) for Turkish stocks.
Furthermore, no new stocks will be added to the Turkey Investable Market Index (IMI). During this process, companies will also not be permitted to transition to higher categories among size segments.
MSCI drew attention to the importance of sharing detailed and timely information regarding the ultimate beneficial owners of companies to address these concerns. The organization stated that an effective oversight and sanction mechanism against coordinated transactions is necessary, as well as a transparent, rules-based system for identifying securities with distorted free-float structures.
The statement noted that Turkish authorities have implemented some regulations following assessments, but these steps are still in the initial phase. MSCI stated that time is needed to monitor whether these regulations are applied consistently across the market and whether they provide the structural improvements demanded by investors.
The organization also announced that it will continue to seek feedback from market participants regarding the functioning of the Turkish stock market during this process.
MSCI's statement indicated that if sufficient progress is not made by June 2027, additional measures for Turkey may be considered. In this context, it was stated that the possibility of reclassifying the MSCI Turkey Indexes from their current "Emerging Market" status to "Frontier Market" or "Standalone Market" status could be evaluated.
It was announced that the market classification of Turkey indexes will be reconsidered within the scope of the 2027 Annual Market Classification Review.
News Source: 12punto
