Index provider MSCI announced that it has decided to temporarily freeze certain index changes for Turkish stocks. It was reported that the decision will come into force immediately and will be valid until further notice.
In the statement made by MSCI, it was stated that within the scope of the 2026 Market Classification Review, there are serious concerns about possible coordinated transactions that may be carried out by institutional investors over the shares held by funds closely related to some small-scale public companies in Turkey.
It was emphasized that such transactions may negatively affect the reliability of calculations regarding free circulation rates of shares and market integrity.
MSCI stated that in order to address these concerns, detailed and timely information regarding the ultimate shareholders of companies should be shared, effective audit and sanction mechanisms against coordinated transactions should be established, and a transparent, rule-based system should be established to detect securities with impaired free circulation structure.
The steps taken by Türkiye are being monitored
In the statement, it was noted that Turkish authorities implemented various regulations following these evaluations. However, MSCI pointed out that the steps taken are still in their early stages.
For this reason, it was stated that institutional investors expect the implementation of reliable and sustainable sanctions against coordinated transactions and the development of disclosure standards that allow independent verification of free float rates of Turkish stocks.
Attention was drawn to the importance of applying these measures consistently throughout the market.
MSCI stated that more time is needed to evaluate whether the regulations provide the structural improvements that investors demand.
It was noted that in this process, opinions from market participants regarding the functioning of the Turkish stock market will continue to be sought.
Some index changes for Turkish stocks were frozen
MSCI announced that certain index transactions on Turkish stocks will be temporarily suspended within the scope of the evaluation process.
Within the scope of the application, some changes resulting from MSCI, index reviews or corporate transactions will not be made.
Accordingly, MSCI will not increase the Foreign Investor Rates (FIF) or Number of Shares (NOS) of Turkish stocks.
In addition, no new shares will be added to MSCI Türkiye Investable Market Index (IMI) and companies will not be allowed to move to higher categories between size segments.
Türkiye's market classification may be re-evaluated
MSCI stated that it will closely monitor the effectiveness of the regulations and supervisory measures implemented in the Turkish stock market.
In the statement, it was stated that if sufficient progress is not achieved by June 2027, additional measures for Türkiye may be considered.
In this context, it was stated that the possibility of reclassifying MSCI Türkiye Indices from the current "Emerging Market" status to "Frontier Market" or "Independent Market" status may also come to the agenda.
MSCI announced that the market classification of Türkiye indices will be re-evaluated within the scope of the 2027 Annual Market Classification Review.
