By Bosphorus News Economy Desk
President Recep Tayyip Erdoğan dismissed the chairman of Türkiye's Capital Markets Board (SPK) on October 20, a day after he submitted his resignation. Separately, Tera Yatırım Teknoloji Holding disclosed a court-ordered trusteeship on October 19, following MSCI's October 15 freeze of certain upward changes to Turkish equity indexes.
Mahmut Sütcü, appointed SPK chairman in May, submitted his resignation on October 19, citing health problems, according to ministry sources. The Official Gazette also recorded the removal of İbrahim Ömer Gönül as head of the Public Oversight, Accounting and Auditing Standards Authority. Gönül previously chaired the SPK.
On October 14, Treasury and Finance Minister Mehmet Şimşek authorized an investigation into Gönül following a preliminary review by ministry inspectors requested by İstanbul prosecutors. The inquiry concerns allegations that Gönül failed to carry out his regulatory duties. Permission to investigate is not a finding of wrongdoing.
Deputy Treasury and Finance Minister Osman Çelik sought retirement effective October 19. Kutluhan Taşkın, previously deputy head of the Presidency's Strategy and Budget Office, was appointed to the ministry post. Şinasi Candan moved from the State Supply Office to lead the Revenue Administration. The official appointment decisions did not link these changes to the fund investigation.
Tera placed under trusteeship
Tera Yatırım Teknoloji Holding disclosed on October 19 that an İstanbul court had appointed the Savings Deposit Insurance Fund (TMSF) as trustee under an October 14 order. The fund appointed a board chaired by Enis Güçlü Şirin. The order concerns the holding company, separately from the liquidation of investment funds managed by Tera Portföy.
The wider investigation has already led to asset freezes covering 46 legal entities, 18 funds and 42 individuals as prosecutors examine withdrawals ahead of the September trading halt.
Sixty-five funds remain in liquidation
The government's Fund Coordination Board said on October 18 that Ziraat Bankası had completed TL40.8 billion in cash and in-kind liquidation transactions across 66 funds managed by A1 Capital, Bulls and Pardus, covering more than 45,000 investors. That left 65 of the original 131 funds in liquidation.
Speaking to Bloomberg HT and Habertürk on October 20, Şimşek said the ordinary liquidations had progressed as planned, but final settlement of the remaining funds would take longer. Those funds require an exceptional liquidation procedure now before parliament.
On October 1, the SPK introduced an interim-payment procedure for funds managed by Tera, Pusula, Atlas and Hedef. Each investor may receive up to TL1 million per fund, subject to verified net investment. Advances will be deducted from final entitlements, with money-market funds first in line. Şimşek said payments under the exceptional process would follow passage of the law and depend on available fund assets, without public financing.
Parliament's Planning and Budget Committee approved the special liquidation bill on October 14, but it had not passed the full assembly as of October 20. Vice President Cevdet Yılmaz said the government was coordinating administrative and judicial measures alongside the proposed legislation.
MSCI freezes upward index changes
Months before the September fund closures, MSCI raised concerns about possible coordinated trading in smaller Turkish shares and doubts over the pricing of low-float stocks.
On October 15, MSCI froze certain upward changes to its Turkish equity indexes. It will block increases to foreign inclusion factors and share counts, additions to the MSCI Turkey Investable Market Index and moves into higher size categories until further notice. Trading in Turkish shares has not been suspended.
MSCI acknowledged initial Turkish free-float reforms but said investors still needed verifiable ownership disclosures and sustained enforcement against coordinated trading. Türkiye retains emerging-market status. If progress is insufficient by June 2027, MSCI may consult investors on a move to frontier or standalone classification. It will reassess the freeze during its 2027 Annual Market Classification Review.
Sources: Official Gazette, Capital Markets Board of Türkiye, Turkish Grand National Assembly, Presidency's Directorate of Communications, Public Disclosure Platform, MSCI, Bloomberg HT, Bosphorus News review and reporting.