**Turkey Lifts Asset Freezes on 46 Companies Amid Market Investigation**
In a significant development, Turkish authorities have lifted asset-freeze orders on 46 companies that were previously imposed as part of an investigation into potential market manipulation and irregularities in investment funds. This decision was reported by broadcaster NTV and other media outlets on Monday.
The Istanbul chief prosecutor’s office confirmed that the lifting of the asset freezes followed new assessments and notifications from Turkey’s Capital Markets Board (SPK). The investigation initially targeted a wide range of legal entities, investment funds, and individuals, with the aim of scrutinizing large stock market transactions that occurred between July and mid-September. This period was marked by a notable increase in assets under management for various funds, culminating in a liquidity crisis that prompted the SPK to order the liquidation of numerous funds on September 17.
Justice Minister Akin Gurlek had previously indicated that investigators were closely examining substantial share purchases and sales during this timeframe, as part of a broader inquiry into alleged market manipulation. The asset freezes had initially affected not only the 46 companies but also 18 investment funds and 42 individuals. Additionally, authorities imposed overseas travel bans on 37 individuals connected to the investigation.
The market turmoil that led to these investigations was reportedly triggered by suspected price manipulation involving several thinly traded stocks. This manipulation resulted in significant financial losses and increased redemption pressures on investment funds, prompting regulatory bodies to implement emergency measures aimed at preserving financial stability in the market.
Compounding the situation, a political controversy emerged over allegations involving Fatma Betul Sayan Kaya, a deputy chair of President Tayyip Erdogan’s ruling AK Party. Following claims from an opposition politician that she and her husband profited significantly from trading shares of Ozata Denizcilik (OZATD.IS) just before the market crisis, Kaya resigned from her party positions. In her statement on social media platform X, she expressed her belief in the necessity of taking political responsibility while the allegations were being investigated, and requested President Erdogan to relieve her of her duties. However, she did not elaborate on the specifics of the allegations.
The lifting of the asset freezes marks a pivotal moment in the ongoing investigation, as authorities continue to navigate the complexities of market regulation and the implications of the recent financial turbulence. The situation remains fluid, with potential further developments expected as the inquiry progresses and regulatory bodies assess the broader impact on Turkey's financial landscape.