Interim Payments Up to 1 Million Lira to Be Offered in Funds Liquidated Under CMB Supervision

A bill concerning funds that the Capital Markets Board (CMB) ordered liquidated through decisions dated September 17, 2024, is entering the agenda of the TBMM General Assembly today. According to information reported by NTV, if the proposal becomes law, investors with net investment amounts below 1 million lira could receive interim payments up to that amount; investors with amounts exceeding 1 million lira will be capped at a maximum of 1 million lira.

The liquidation process will be conducted under CMB supervision through entities designated to carry out the liquidation. Additionally, a provision added to the proposal stipulates that no payments from the liquidation and recovery accounts of these funds will be made to those identified by the CMB as having engaged in 'market-distorting conduct', 'misuse of information', or 'market fraud'.

The regulation also provides that seizure decisions may be issued in criminal investigations related to the funds in accordance with relevant provisions of the Criminal Procedure Code.

The CMB has previously issued similar liquidation decisions; however, there was no legal framework allowing for interim payments to investors during those processes. The new regulation introduces partial recovery from the liquidation account to legislation for the first time.