CMB Drafts Comprehensive Amendments to Investment Funds Guide

Industry Consultation Process Begins The Capital Markets Board (CMB) has submitted a comprehensive draft amendment to the Investment Funds Guide for review by members of the Turkish Capital Markets Association (TSPB).
Industry stakeholders are requested to submit their feedback, particularly regarding investment limits and compliance periods, by February 26, 2026.
New Standards for Hedge Funds Under the new draft, the number of hedge funds a portfolio management company can issue will be limited based on the number of portfolio managers employed by the firm.
Additionally, sub-funds under hedge umbrella funds must be significantly differentiated in terms of strategy, asset type, or management fees.
The proposal also includes a requirement for cash capital increases for companies whose portfolios consist primarily of hedge funds.
Investment Limits and Concentration Rules The draft introduces limits on investments made by hedge funds into issuers where they hold management control or into issuers belonging to their own group.
New concentration limits are also being established for investments in the shares or debt instruments of a single issuer.
For over-the-counter (OTC) repo and reverse repo transactions, standard contracts, notification, and custody requirements will be implemented through Takasbank.
Portfolio Structure in Money Market Funds Reverse repo transactions by money market funds in the Borsa Istanbul Equity Repo Market will be limited to 25% of the fund's total value.
These transactions must use shares from at least five different groups as collateral, and at least 10% of the portfolio must be invested in government domestic debt securities (GDDS).
Lock-up Periods for REIFs and VCFs A lock-up period is being introduced for public company shares transferred into Real Estate Investment Funds (REIFs) and Venture Capital Investment Funds (VCFs).
These shares cannot be sold on the exchange for three months for REIFs and one year for VCFs.
Furthermore, these funds will be prohibited from acting as buyers in special orders or wholesale markets on the exchange.
Transparency and Public Disclosure Hedge funds traded on TEFAS are expected to disclose portfolio distribution reports every two weeks instead of monthly.
Major investors holding 50% or more of a fund will be announced on the Public Disclosure Platform (KAP) by the Central Securities Depository (MKK).
The regulation also mandates the appointment of at least two portfolio managers for every fund and introduces restrictions on the use of foreign names in fund titles.