Turkey's stock market scandal affects nearly half a million investors. Police have made several arrests and an AKP politician has resigned.
Nearly half a million investors are affected, arrests have been made, and a female politician from the ruling party has resigned. What is behind the stock market manipulation scandal in Turkey?
A major market manipulation scandal in Turkey has left around 455,000 investors affected, as the country's stock market plummeted in mid-September. Approximately 131 funds, including those managed by Pusula Portfoy, Tera, and Atlas, have been shut down by the Capital Markets Board (SPK), with a total of €6.5 billion ($6.37 billion) in assets at risk.
More than 45 people have been arrested, and a high-ranking AKP politician has resigned. The Istanbul Public Prosecutor's Office is investigating charges of fraud, capital markets law violations, and criminal organization formation, alleging that fund companies artificially inflated fund values while containing worthless junk stocks.
The Istanbul Stock Exchange has excluded 27 stocks from its benchmark index, and fund liquidations are underway, with proceeds to be distributed to investors in proportion to their fund shares.
Brief written by urgent.news from DW News's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
