Submitting a redemption instruction does not, by itself, put an investor outside the liquidation process. Turkey’s market regulator has clarified why the order date and completed settlement must be treated separately.
Turkey’s Capital Markets Board (CMB) has clarified how investors will be paid for orders submitted on September 17 and then cancelled in funds undergoing liquidation. Its September 28 notice says those investors will receive payments from the liquidation balance in proportion to their fund-unit ownership. A redemption instruction alone does not put them back into the normal settlement process.
The clarification concerns the liquidation of 131 funds established by seven portfolio management firms. In its September 23 investor-count statement, the regulator cited records from Turkey’s Central Securities Depository showing 455,758 unique investors. The liquidation decision dates to September 17; the latest notice explains the treatment of orders submitted on or before that date.
The regulator describes the payment basis as follows:
“Payment will be made from the liquidation balance in proportion to fund-unit ownership.”
Some earlier orders are also covered
The CMB says purchase and redemption instructions submitted to TEFAS, Turkey’s electronic fund trading platform, on September 16 or earlier were included in the platform’s normal processing at their applicable value dates. A value date is the date used for pricing or settlement. Submitting an instruction, however, does not establish that the transaction was completed.
An earlier order can still fall within liquidation. Instructions submitted on September 16 or before that could not be executed because a fund defaulted or failed to announce a price are also covered. The order date alone therefore does not establish an investor’s payment status.
The notice also addresses confusion over the 1:30 p.m. cutoff. Instructions submitted after 1:30 p.m. on September 16 and before 1:30 p.m. on September 17 shared the same pricing value date. But the funds were closed to trading on TEFAS on September 17. According to the CMB, the platform cancelled every instruction submitted that day. Sharing a pricing date did not create an exception to the trading suspension.
The CMB’s official X post announcing the clarification
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Six months is not a promised payment date
The clarification does not establish how much each investor will receive or when. No individual payment amount or schedule is provided. Assets under management describe the overall portfolio, while this notice ties each investor’s payment to the liquidation balance and their unit ownership. A fund’s total size is not the same as an individual investor’s claim.
In a time-limit adjustment announced on September 21, the CMB extended the three-month period in the liquidation procedures to six months. It said the change was intended to allow portfolio assets to be sold on suitable terms, taking market conditions into account. The regulator also said liquidation need not take the full six months and could be completed sooner. The latest notice does not change that period again; it explains how cancelled or unexecuted orders are treated within the process.
