Capital Markets Board Extends Liquidation Period for Hedge Funds to Six Months
Following the default of Pusula Yatırım and Tera Yatırım, the Capital Markets Board has extended the liquidation period for hedge funds to up to six months.
The default of Pusula Yatırım and Tera Yatırım after failing to make their payments has caused turbulence in the markets. While the Capital Markets Board decided to extend the liquidation process in hedge funds up to six months with its new resolution, hundreds of thousands of investors are wondering when repayments will be made.
Liquidation Period Extended for Hedge Funds
The consecutive defaults of Pusula Yatırım and Tera Yatırım by failing to make their payments caused concern in the fund market. The Capital Markets Board extended the liquidation period, initially announced as three months, to up to six months with a new announcement.
Which Funds Are Covered by the Regulation
This regulation implemented by the Capital Markets Board does not cover the entire fund market but focuses on a specific group of investors. Hedge funds, which individuals with savings of 10 million Turkish Lira and above can participate in, have reached a total size of approximately 5.9 trillion liras, and within this scope, 131 funds at the mentioned companies are undergoing the liquidation process.
When Will Investors Get Their Money Back
Investors experiencing serious anxiety in the market are researching how and within what timeframe they will get back the amounts they invested. For repayments to begin, the market first needs to stabilize.
Institutions to Conduct Liquidation Transactions
The liquidation process will be carried out through İş Bankası and Ziraat Bankası, and first, how much money each person has in the fund will be clarified. Then, the shares of the investors will be checked one by one regarding attachments and blocks.
Asset and Debt Controls Will Be Performed
Within the scope of liquidation efforts, all assets, debts, and receivables of the funds, including stocks, deposits, repos, and loans, will be detailed. It is stated that those who placed orders between September 16 at 1:30 PM and September 17 at 1:30 PM will have priority.
Search for High Returns Grew the Market
While the fund size in capital markets was at the level of 120 billion liras in 2020, this figure reached 8.9 trillion liras on September 16, 2024. Behind this growth is the increasing interest of investors driven by expectations of high monthly returns.