Turkey will impose tougher penalties and new regulations to curb market manipulation by “certain” investment funds, Finance Minister Mehmet Şimşek said Tuesday in a warning to the country’s financial sector.
Speaking at the Turkish Capital Markets Congress in İstanbul, Şimşek said authorities had detected manipulative trading activity and gaps in oversight. “We know these manipulations are being carried out, especially through certain funds, and know there is a lack of regulation in that area. We will be addressing these problems,” he told bankers and investors.
Şimşek said the government plans to strengthen the regulatory framework and increase penalties for market abuse.
Omer Gönül, head of the Capital Markets Board (SPK), told reporters that the agency is considering raising fines for manipulation and may revoke portfolio management licenses in severe cases.
Authorities have intensified market surveillance in the past year, detaining dozens of suspects accused of artificially moving share prices and trading volumes.
The crackdown comes amid heightened volatility in Turkish financial markets, as years of high inflation have pushed citizens to seek alternative ways to preserve savings, from foreign currencies to stocks and cryptocurrencies.