Türkiye Financial Committee Meets After BIST 100 Plunge

The Financial Stability Committee of Türkiye convened an emergency meeting on Thursday to address a sharp downturn in the country's benchmark stock index. The BIST 100 index experienced significant volatility on Wednesday, falling more than 7.5 percent at one point before closing 5.54 percent lower at 13,122.58 points, an event that triggered a circuit breaker.

Market instability stemmed from liquidity shortages at mutual funds, which were exacerbated by regulatory changes introduced by the Capital Markets Board on August 28. These rule changes led to a surge in redemption requests, forcing portfolio management firms to sell stocks rapidly to meet investor cash demands.

In response to the crash, the Istanbul Chief Public Prosecutor's Office launched an ex-officio investigation into social media posts. Authorities suspect these posts were used to manipulate capital markets and incite panic among investors.