Law No. 7596 on Funds Takes Effect: Full Interim Payment for Net Investment Below 1 Million TL, Maximum 1 Million TL for Those Above

On September 17, 2025, the Capital Markets Board (SPK) decided to liquidate investment funds, and Law No. 7596 regulating those funds whose transactions have not yet been completed was published in the Official Gazette on October 27, 2026, and entered into force.

According to Article 4 of the law, interim payment cannot exceed the net investment amount calculated without inflation indexing applied. Investors with a net investment amount below 1 million lira will receive interim payment equal to the calculated amount; those with 1 million lira and above will be able to receive a maximum interim payment of 1 million lira. This limit does not mean automatic payment of 1 million lira to each investor; payments will be limited by the distributable cash available to the relevant fund.

The investor's net investment amount will be calculated by updating cash inflows and outflows to the fund using the consumer price index (CPI) announced by TURKSTAT and domestic producer price indices. If the fund's distributable cash is insufficient to cover payments to all investors, SPK may decide to make payments starting from investors with the lowest net investment amount or establish a minimum interim payment amount for all investors.

Investor entitlements will be determined by comparing Central Registry Agency (CRA) records with the liquidation bodies' records. Participation shares will not be refunded in exchange for interim payment; they will be offset in final liquidation payments. The law covers only SPK's September 17, 2025 decisions; it does not establish a general liquidation regime for other funds.