With its decision No. 57/1708 dated 17.09.2026, the Capital Markets Board (the “CMB”) set out the liquidation procedures for the 131 investment funds established by Tera, A1 Capital, Atlas, Bulls, Hedef, Pardus and Pusula Portföy Yönetimi, whose liquidation had been ordered under its previous decision, and updated the relevant list of funds in the same decision.
Pursuant to the CMB’s decision No. 57/1708:
- As portfolio custodian, T. İş Bankası A.Ş. has been appointed for the funds established by Tera Portföy, and T.C. Ziraat Bankası A.Ş. for the funds established by the other six companies (A1 Capital, Atlas, Bulls, Hedef, Pardus and Pusula); these banks have been authorised to carry out the liquidation process.
- Within 2 business days of the decision taking effect, the funds’ total participation shares and investors’ holdings (including any pledges, attachments, injunctions and unexecuted orders) will be reconciled between the Merkezi Kayıt Kuruluşu A.Ş. (Central Securities Depository) and the relevant banks, and the funds’ assets will be held in the relevant banks’ accounts at İstanbul Takas ve Saklama Bankası A.Ş. (“Takasbank”). Reconciliation of receivables and payables arising from all types of fund transactions (including repo, reverse repo, exchange money market transactions, share repo, securities collateralised reverse repo, committed transactions, forward transactions, time and demand deposits and participation accounts, loans utilised, and participation finance transactions) will be carried out between the previous custodian, the bank and Takasbank, and will be completed within a maximum of 10 business days following the CMB’s decision.
- Assets in the fund portfolio will be converted into cash through sales carried out at a frequency determined by the banks, having regard to investor interests, market depth and liquidity conditions; the resulting cash will be transferred to investors’ reconciled individual accounts pro rata to their participation share ownership.
- Redemption instructions for notice funds submitted after 13:30 on 17.09.2026, as well as purchase/redemption instructions submitted through channels outside the Turkey Electronic Fund Trading Platform (“TEFAS”), have also been brought within the scope of the liquidation; amounts corresponding to redemption instructions submitted through TEFAS that were not executed will be recorded as a priority debt of the fund account. The liquidation process will be completed within a maximum of three months from the announcement (extendable by the CMB), at the end of which the fund prospectus will be deregistered from the trade registry.
The decision provides a concrete framework for implementing the previously announced liquidation decision by clarifying the cash-conversion timeline, payment priority, and the maximum liquidation period. We recommend that institutional investors with investments in the affected funds closely monitor the payment schedule to be determined by the relevant custodian bank, any transaction restrictions applicable through non-TEFAS channels, and the liquidation timetable. Portfolio management companies, meanwhile, should review the allocation of duties and responsibilities arising from the change in custodian institution.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
