Borsa Istanbul Ejects Factoring Stock from BIST 30 and 100 Indexes After Fund Probe

The index committee acted after the Capital Markets Board opened proceedings against multiple funds holding large positions in the stock. Official notices show the firm accounted for concentrated exposure that exceeded liquidity thresholds in several domestic portfolios. Removal forces passive trackers and active managers to sell within rebalancing windows, creating immediate downward pressure on the share price and related derivatives.

Turkey's regulatory move aligns with documented efforts to curb leverage in non-bank credit channels. Factoring firms have expanded balance sheets rapidly since 2023 while deposit rates remained negative in real terms, drawing retail and institutional capital outside conventional banks. The ejection raises the cost of maintaining similar positions and signals that authorities will target liquidity mismatches rather than permit further expansion.

Local investors holding equity-linked pension and mutual fund units face direct repricing. Foreign portfolio data from the Central Bank of Turkey already record net outflows of $1.8 billion in the preceding quarter; index exclusion will likely accelerate mandatory sales by global ETFs tracking the benchmarks. This compounds existing pressure from lira volatility and reserve requirements.

Next steps hinge on whether the Capital Markets Board imposes asset freezes or forced restructurings. Any such order would further reduce the investable universe for domestic funds and widen bid-ask spreads in the remaining mid-cap names still inside the indexes.