17 suspects detained in probe into sharp swings in stock exchange
ISTANBUL
Authorities have apprehended 17 individuals in connection with an investigation into extraordinary price fluctuations in Borsa Istanbul.
The investigation, initiated by the Istanbul Chief Public Prosecutor's Office on Feb. 23, revealed that recent unusual price movements in the stock exchange were driven by manipulative actions and misleading news, causing abrupt declines in the market.
These fluctuations were deemed to undermine the market’s trust, transparency and stability, as they lacked reasonable economic or financial justification, the office said in an official document, as quoted by local media.
Anti-financial crime units conducted operations across various provinces targeting the identified individuals, with the identity of the suspects not revealed.
Before the prosecutor’s office investigation, the Capital Markets Board (SPK) also announced an inquiry in which the body placed all related transactions under scrutiny.
“Legal actions and investigations have been immediately launched against those responsible for disseminating deliberately misleading information, as well as those who have spread such reports, leading to extraordinary price and volume movements,” the board said.
Following the sharp declines last month, Borsa Istanbul imposed an uptick rule for short-selling transactions involving the top 50 companies, as the benchmark BIST 100 Index experienced a significant drop of 3.4 percent during the afternoon session on Feb 21.
After the inflation data released on March 3, the BIST 100 index surged by nearly 4 percent, surpassing the 10,000-point threshold for the first time in nearly a month.
On Tuesday, the index traded flat at 9,905 points.
