CMB Decision to Pay Up to 1 Million Liras to Fund Investors in the Liquidation Process

The Capital Markets Board's (CMB) decision to make an interim payment of up to 1 million liras to investors in some investment funds in the liquidation process has started a new phase regarding how the liquidation process will work within the scope of the fund investigation and when investors can receive their payments.

According to the decision of the CMB, interim payments will be made to all participation share holders whose reconciliation has been completed in the funds established by Tera, Pusula, Atlas and Hedef Portföy Yönetimi AŞ and which are in the liquidation process, as an offset to the payment they will be entitled to as a result of the liquidation.

The amount of the interim payment will be determined based on the net investment amount calculated for each investor by the Central Registry Agency (MKK). Accordingly, investors with a net investment amount of less than 1 million lira on the payment date will receive the full amount, and investors with a net investment amount of 1 million lira or more will receive an interim payment of up to 1 million lira.

However, the payment in question will not be a separate payment in addition to the amount the investor will be entitled to at the end of the liquidation. The interim payment will be offset against the final liquidation payment and the refund of participation shares will be made during the final liquidation payments.

HOW WILL THE 1 MILLION LIRA LIMIT AFFECT THE TOTAL RECEIVABLES OF INVESTORS?

With the CMB's decision, the most important question for investors will be how the 1 million lira interim payment limit will be reflected in the total amount to be received at the end of the final liquidation. Because the regulation stipulates that only a portion of the amount to which the investor will be entitled as a result of liquidation will be paid earlier.

So, how will the 'net investment amount', which will be used as the basis for the investor's interim payment, be calculated? What data will be taken into account in the calculation made by MKK? How will the interim payment up to 1 million lira be offset against the final liquidation payment? What steps will be taken to determine the total amount that will be received by the investor at the end of the liquidation?

CMB's decision to start the liquidation process from funds with the phrase 'money market' in their title and to proceed from the fund with the highest number of investors to the fund with the lowest number of investors is also important for the functioning of the process.

We examined the answers to all these questions and what the CMB's new decision means for investors in the liquidation process.