Turkey sets up council to oversee investment fund liquidations

ISTANBUL, Sept 29 (Reuters) — Turkey established a fund coordination council chaired by the vice president to oversee the rapid liquidation of investment funds to protect investor rights following a recent fund crisis, the presidency said on Tuesday. Authorities has launched an audit of recent investment fund transactions in capital markets, the presidency said. The Capital Markets Board presented a roadmap for paying investors, based on the asset and liquidity status of funds under liquidation during a meeting by economy officials and President Tayyip Erdogan. The presidency said the officials discussed additional administrative and legal measures to strengthen capital markets oversight and prevent similar crises recurring. The fund crisis erupted after suspected price manipulation in a number of thinly traded stocks triggered heavy losses and redemption pressures at investment funds. Almost half a million investors hold stakes in more than 100 Turkish investment funds worth $20 billion that authorities ordered to be liquidated this month. (Reporting by Ezgi Erkoyun; Editing by Chizu Nomiyama) ((Email: ezgi.erkoyun@thomsonreuters.com)