Turkey says nearly half a million investors affected by funds liquidation

Turkey's capital markets regulator said ​on Wednesday that almost ​half a million ‌investors hold stakes ​in more than 100 Turkish investment funds worth around $18 billion which authorities last week ‌ordered to be liquidated during a market selloff. Turkish authorities also took steps last week to support financial stability, including measures to boost lira ‌liquidity and ease some capital and margin requirements after some ‌funds struggled to meet withdrawals during a stock market selloff.

Turkey's Capital Markets Board, or SPK, said in a statement that the number of individual investors in ⁠the ​funds affected was ⁠455,758, citing central securities depository records. Meanwhile, authorities have widened an investigation launched by prosecutors ⁠last week after the SPK filed criminal complaints over transactions in shares ​of Turkish companies Katilimevim, Gundogdu Gida and Destek Finans.

Turkish media ⁠reported that five people who were detained in recent days had appeared in ⁠court ​on Wednesday and had been jailed pending trial. Turkey's justice ministry had no immediate comment.

The ministry said in a statement ⁠on Tuesday that individuals faced charges including violating Turkey's capital markets law, membership ⁠of a ⁠criminal organisation and aggravated fraud committed by company executives or others acting on behalf of a company during ‌commercial ‌activities.