MSCI Freezes Structural Changes for Turkish Stock Market
Morgan Stanley Capital International announced that it has suspended certain structural regulations in Turkish markets and issued a status warning for June 2027.
International index provider Morgan Stanley Capital International has frozen certain structural changes regarding the Turkish stock market until further notice and issued a status warning for June 2027.
Suspension of Structural Changes
International index provider Morgan Stanley Capital International has suspended a series of structural changes regarding the Turkish stock market until further notice. The decision, shaped in line with feedback from institutional investors, took effect immediately.
Four Main Suspended Categories
According to information reported by the Financial Times, four main categories were suspended within the scope of the temporary practice. Increases in the foreign inclusion factor and increases in the number of shares considered in the indices were halted.
Prevention of New Stock Additions
This temporary practice also prevents new stock additions to the MSCI Turkey Investable Market Index. The processes of upgrading companies to higher-scale index segments are also among the frozen categories.
Investor Feedback
Data provided by institutional portfolio managers was decisive in the background of the decision. Investors emphasized that funds linked to small-scale companies act in a coordinated manner, misleadingly affecting actual free float rates.
Audit Steps and Conditions
Noting the audit steps initiated by regulatory authorities in Turkey, MSCI reported that the measures have remained at an initial level. The institution stipulated the complete disclosure of ultimate beneficiaries and the operation of independent audit mechanisms that protect market integrity.
June 2027 Status Warning
MSCI, which will continue to monitor practices on Borsa Istanbul throughout the process, will expand sanctions if reform steps remain insufficient. If the expected progress is not achieved by June 2027, Turkey's Emerging Markets status will be opened to official consultation.