Turkey’s investment-fund crisis escalated after authorities detained senior executives from Tera Holding and Destek and imposed travel bans on 48 people, including Tera chairman Emre Tezmen. The actions followed Tera Portföy’s disclosure on September 16 that it had defaulted on redemption payments totaling 366 billion Turkish lira, approximately $7.5 billion, across two major funds. Turkey’s Capital Markets Board, known as the SPK, suspended trading in all TEFAS-traded funds linked to Tera Portföy and ordered the liquidation of around 130 specific funds the following day. The BIST 100 fell 5.54% on September 16 to close at 13,122.58 after dropping as much as 7.7% intraday, as investors withdrew roughly $1 billion from local funds. Pusula Portföy had also defaulted on redemption requests for certain funds. The SPK filed criminal complaints against dozens of people over alleged share-price manipulation involving stocks including Destek Finans Faktoring and Gündoğdu Gıda, while imposing trading bans on certain fund managers. The combined assets under management of Tera, Pusula and Atlas had previously exceeded $29 billion. Authorities also announced liquidity-support measures to limit contagion across Turkey’s financial system. The investigation follows tighter fund rules introduced after concerns from global index providers including MSCI about concentrated positions in illiquid, low-free-float stocks linked to affiliated parties. Turkey’s Financial Stability Committee scheduled an emergency meeting for September 17 after funds recorded approximately 128.7 billion lira, or about $2.7 billion, in outflows since late August 2026.