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The Turkish government is reportedly preparing legislation to increase prison sentences and monetary fines for market manipulation on Borsa Istanbul, Türkiye’s stock exchange, according to an official familiar with the matter.
The bill, expected to be submitted to Parliament in the coming days, seeks to double existing penalties in an effort to strengthen financial market oversight, Bloomberg reported.
Once finalized, the draft bill will be presented by the government to Parliament for committee review before being debated and voted on, it suggested.
The proposed legislation would raise prison terms for market fraud from the current range of three to five years, potentially doubling the upper limit, the official cited by Bloomberg said. It would also increase the minimum fine of ₺500,000 ($11,839) that individuals must pay to the Treasury to avoid prosecution in certain cases.
The planned amendments, which aim to close regulatory gaps and strengthen deterrence against misconduct, come amid concerns that some investment funds have delivered unusually high returns, raising suspicions of market manipulation.
The new bill also aims to broaden the scope of those subject to penalties, extending measures to individuals or entities that collaborate with or are reasonably suspected of engaging in market-distorting practices. Certain investment funds identified by the Capital Markets Board would also be covered under these enhanced provisions.
Additionally, the proposed framework includes educational initiatives to improve financial literacy among investors, the report said.
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Speaking at the 9th Capital Markets Congress in Istanbul last week, Treasury and Finance Minister Mehmet Simsek said the government will tighten oversight and strengthen regulations to curb market manipulation, emphasizing that authorities are aware of irregular activities in certain investment funds.
"We will close those gaps and, in the coming period, raise the intensity of our fight against manipulation beyond even our efforts against the unregistered economy," Simsek remarked. "The stock market is not a playground. It is about building genuine partnerships and long-term ownership."
Capital Markets Board Chairman Omer Gonul also confirmed that the regulator has identified funds involved in manipulative activities and intends to revoke licenses and impose higher fines where necessary. Gonul added that while the board values the role of funds in the financial ecosystem, their misuse for manipulation requires new measures, saying, "We have to make these adjustments now."
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