MSCI Renews Warning for Turkey and Indonesia

Global index provider Morgan Stanley Capital International has reiterated its warnings to Turkey and Indonesia due to concerns over transparency, information flow, and market operations. The institution stated that if concrete steps are not taken by the specified date, an official consultation process will come to the agenda.

International Warnings

Global index provider Morgan Stanley Capital International has renewed its warnings for Turkey and Indonesia due to its concerns regarding transparency and market operations. The institution announced that structural issues in capital markets must be resolved.

Market Operations

It was emphasized that problems experienced in Turkish capital markets regarding issues such as shareholder structure, free-float share ratios, and coordinated trading behaviors must be eliminated. Investability criteria are being addressed in line with participants' expectations.

November 2026 Process

It was stated that if sufficient, concrete, and reliable progress is not made by the November 2026 Index Review process, an official consultation process could be initiated to evaluate Turkey's global status.

Investor Rights

It was expressed that the rights of international institutional investors must be protected, ownership structures disclosed in a timely manner, and elements that could distort price formation removed.

Detection of Coordinated Trading

MSCI had reported in June that repeated examples of potential coordinated trading behaviors were detected in fund assets linked to certain small-scale companies in the Turkish market.

Emerging Market Status

Turkey currently remains in the emerging market category within the existing indices. If necessary steps are not taken, it could open the door to a process that may lead to the re-evaluation of this status.