Turkey Fund Crisis: Why AK Party Deputy Chair Resigned Over Stock Trade Allegations

Fatma Betul Sayan Kaya, the AK Party deputy chair responsible for social policies and a former family and social policies minister, asked President Recep Tayyip Erdogan to relieve her of all her party duties on Sept. 26 as allegations over stock trading involving her and her husband came under scrutiny.

Kaya said stepping aside would allow an investigation into the claims to proceed without her political position becoming part of the dispute.

The allegations were raised by Zeynel Emre, spokesman for the Yeni Party, at a party event in Istanbul on Sept. 26. Emre alleged that Kaya and her husband, Ilyas Kaya, invested a combined 163 million lira ($3.3 million) in April, mainly in shares of shipbuilder Ozata Denizcilik, and later received about 2.17 billion lira ($44 million) from selling those shares.

What Kaya Said About Her Departure

Kaya announced her decision in a post on X on Sept. 26. She said she wanted the allegations to be fully clarified and that taking political responsibility was necessary while the investigation proceeded. The original post was published on her verified X account.

Her departure came as Turkish authorities continued a wider investigation into suspected market manipulation and problems in the country’s investment fund industry.

The investigation has involved several portfolio management companies and listed companies, while regulators have ordered the liquidation of 131 funds.

Kaya previously served as Turkey’s family and social policies minister from 2016 to 2018. She later returned to senior AK Party leadership and was serving as the party’s deputy chair responsible for social policies before announcing her departure.

The Stock Trade Allegations

Emre alleged that Kaya invested about 63 million lira in Ozata Denizcilik shares while her husband invested about 100 million lira. He said the pair subsequently received approximately 2.17 billion lira from selling the shares.

The allegation concerns transactions involving Ozata Denizcilik, whose shares rose sharply during 2026 before the broader market turmoil.

Ozata Denizcilik shares traded at about 220 lira at the beginning of April and reached 4,980 lira on Sept. 15, before the fund liquidity problems intensified. Turkish equities fell sharply as concerns about investment funds’ ability to meet redemption requests spread through the market.

The Capital Markets Board, known as the SPK, separately completed an examination of transactions in Ozata Denizcilik shares. Its Sept. 25 bulletin said it had referred 11 people to prosecutors under Article 107/1 of Turkey’s Capital Markets Law and imposed two-year trading bans on the individuals named in the decision.

The regulatory action concerns suspected market misconduct and does not establish that Kaya or her husband committed a crime.

Ozata Denizcilik also disclosed on Sept. 25 that its chairman, Ozdemir Ataseven, and vice chairman, Gokhan Ataseven, were placed under arrest measures by a criminal court as part of the continuing investigation. The company said the measure was a protective step during an ongoing investigation and was not a final conviction.

How Turkey’s Fund Crisis Unfolded

The wider market crisis developed after some investment funds struggled to meet investor withdrawal and redemption requests.

Pusula Portfoy was the first major portfolio manager to disclose difficulties meeting redemptions, followed by Tera Portfoy. Funds holding relatively illiquid stocks were under pressure to sell more liquid assets to raise cash, increasing selling pressure across the market.

On Sept. 16, the BIST 100 index fell around 5.5%. The index ended the week down more than 8%, its weakest weekly performance since March 2025. Turkish authorities subsequently announced measures to provide liquidity and limit the risk of further market disruption.

On Sept. 17, the SPK suspended trading on the TEFAS electronic fund platform for funds managed by seven portfolio companies and ordered 131 funds into liquidation. The affected firms included Tera Portfoy, Pusula Portfoy and Hedef Portfoy. The funds had combined portfolios worth 891 billion lira and about 353,000 investors.

The SPK later issued an official clarification. The Central Securities Depository records said 455,758 individual investors held stakes in the 131 funds. The regulator also advised investors to rely on official announcements because differing figures had circulated publicly.

On Sept. 21, the SPK said it had increased the specified three-month period to six months to give the funds more time to sell their portfolios under appropriate market conditions. The regulator said the change did not mean every liquidation would necessarily take six months.

Government Measures and Investigation

The Central Bank of the Republic of Türkiye increased liquidity support on Sept. 17 by raising funding available through one-week repo auctions, updating banks’ borrowing limits and reducing collateral haircuts. The bank increased repo funding and authorities lowered the minimum equity maintenance requirement for margin trading.

Turkey’s Financial Stability Committee said Sept. 17 that the problems were concentrated in a segment of the investment fund market and described them as temporary and manageable. The committee said authorities would take measures to address the liquidity squeeze and limit the risk of the problem spreading.

The investigation also expanded beyond the fund liquidations. Justice Minister Akin Gurlek said Sept. 22 that 14 of 15 suspects targeted in simultaneous operations in Istanbul and Aydin had been detained, taking the number of people subject to legal proceedings in the wider investigation to 60 at that point.

By Sept. 26, Gurlek said authorities had frozen the assets of 46 legal entities, 18 investment funds and 42 individuals linked to the investigation. He also said 37 suspects were subject to judicial controls preventing them from leaving the country.

Concerns Raised Before the Crisis

Turkey’s authorities had previously warned about suspected manipulation involving investment funds.

On Nov. 4, 2025, Treasury and Finance Minister Mehmet Simsek said, “We know that manipulations are taking place through certain funds. We are aware of the need for regulation in this area as well. We will step up the fight against manipulation even beyond our efforts against the informal economy.”

In August 2026, the SPK introduced tighter rules affecting funds’ exposure to illiquid stocks and requirements for portfolio management companies.

Some analysts linked the subsequent pressure in thinly traded shares to the regulatory changes and the need for affected funds to reassess their positions and liquidity needs.

The investigation remains ongoing. Kaya has denied neither the specific figures publicly nor acknowledged wrongdoing in connection with the allegations, while the authorities’ actions against other market participants concern separate transactions and investigations.

Any determination of criminal liability involving Kaya or her husband would depend on the outcome of the relevant investigations and judicial proceedings.