Recent developments in the capital markets and the agenda regarding some investment funds that were taken into liquidation process were discussed at the meeting held under the chairmanship of the economic management.
While the steps to be taken to protect the rights of investors, accelerate the liquidation process and make payments were evaluated, new regulations to strengthen the control mechanisms in the capital markets were also brought to the agenda.
The Presidency's Directorate of Communications made the following statements in its statement on the subject:
"A coordination meeting was held under the chairmanship of our President, with the participation of economic staff and senior managers of relevant institutions. At the meeting, recent developments in the capital markets were evaluated, and the participants provided information to our President about the work carried out in their fields of duty, the measures taken and to be taken. Our President emphasized that the main priorities are to meticulously continue the work on the funds decided to be liquidated, to protect the rights of investors within the framework of capital market rules, and to make payments fairly, healthily and as soon as possible."
AT THE MEETING, 5 ITEMS REGARDING THE CURRENT SITUATION CAME TO THE FOREGOING
1- Fund Coordination Board: A new coordination board was established to carry out the liquidation process quickly and regularly.
2- DDK review: DDK (State Supervisory Board of the Republic of Turkey) has initiated a process to examine and audit recent investment fund transactions.
3- Company and bank transfer: Information was given about the process of transfer of Katılımevim, Birevim and İktisat Katılım Bankası to Türkiye Emlak Katılım Bankası.
4- Payment to investors: CMB (Capital Markets Board) has prepared a plan to make payments to investors in liquidated funds according to their current assets and liquidity status.
5- New regulations: It is planned to make new regulations that will strengthen the supervision and functioning of the capital markets in order to prevent similar problems from occurring again.
What the announced steps mean for investors, how the liquidation process will proceed, and the possible effects of the decisions taken on the capital markets are a matter of curiosity. I asked the experts what the process means for investors, how the newly created mechanisms will work, and what steps should be taken to prevent similar problems.
WHAT DOES THE PROCESS MEAN FOR THE INVESTOR? “THE TERM 'FAIR' GIVES AN IMPORTANT MESSAGE”
In the statement, it is stated that investors' rights will be protected and payments will be made 'fairly, healthily and as soon as possible'. What do these statements mean in practice from the investor's perspective?
Eral Karayazıcı, Inveo Portföy Fund Management Manager and also one of the writers of Bigpara, said, "We can infer that the process will proceed not in the fastest way possible, but in the fastest way possible." He added: "The optimal thing is to make the payments not in the shortest time possible, but with the lowest interruption. Undoubtedly, what will determine this will be the ability to sell the assets in the funds to be liquidated at relatively close to normal values. This is not possible in a hurry. It would be right to give a meaningful period of time to the institutions that will carry out the liquidation for the benefit of the investors." used.
"The phrase 'fair' in the statement means that while the investors whose rights will be paid will be selected, those who are somehow involved in fund fraud will be eliminated," said Lawyer Ali Kemal Atçeken, adding: "However, taking into account the financial aspect of the incident, it is possible to deduce that the payments will be made within a certain period of time, within the shortest possible time within the framework of treasury possibilities."
COORDINATION PERIOD IN LIQUIDATION OF FUNDS
It was announced that the Fund Coordination Board was established. What will be the concrete task of this board in the liquidation process and why was such coordination needed in the current process?
Stating that the issue is multifaceted and many public institutions will be active in this process, Eral Karayazıcı said, "I think this board is needed in order to ensure an optimal speed and create harmony between institutions."
In the statement made by the Directorate of Communications, it was stated that President Erdoğan emphasized that his main priorities are to meticulously continue the work on the funds decided to be liquidated, to protect the rights of investors within the framework of capital market rules, and to make payments fairly, healthily and as soon as possible. In the same statement; The evaluation was also included: "In order to carry out the liquidation process quickly, taking into account the legitimate rights of investors and the public interest, the Fund Coordination Board has been established under the chairmanship of the Vice President to ensure general coordination." Based on this statement, it is possible to say that the purpose of the Fund Coordination Board is to evaluate the applications and determine who will be paid, how much and in what time period.
