SPK explained that the provisions of the new law, which place trades that have not yet completed settlement into liquidation, do not affect trades that have already settled.
The Capital Markets Board (SPK) explained, regarding the bill under consideration by the Grand National Assembly of Türkiye (TBMM), that questions concerning transaction settlement finality and pay blocking (PBLK) would not affect completed transactions, and that only unsettled orders would be included in the liquidation process.
The explanation stated that the purpose of Article 79, which provides that settlement instructions cannot be cancelled even if operations are suspended, is to maintain confidence in the market. It also clarified that a sell order submitted through TEFAS does not necessarily mean that settlement has begun. TEFAS was described as an operating system based on fund subscriptions and redemptions.
Regarding the treatment of investors whose holdings are subject to PBLK during the liquidation process, it was explained that the mere existence of a sell order or a record does not mean that settlement has begun. Settlement is completed only after cash has been transferred to the investor's account and the record of ownership of the fund participation certificates has been deleted.
The explanation cited the fair distribution of assets among investors as the main reason for including unsettled orders in the liquidation process, emphasizing that the 455,758 fund holders do not form a privileged group and are all subject to the same treatment.
The bill will not apply retroactively and will not affect completed transactions. Unsettled procedures, however, will be included in the liquidation pool, and distributions based on the liquidation outcome are expected to be made on the same terms as for other holders.