Turkish authorities have apprehended 14 individuals as part of an inquiry into alleged manipulation of the transactions on the nation’s primary stock exchange, according to reports from Anadolu news agency on Tuesday.
Among those detained are employees from the local investment firm Investco HoldingINVES.IS. Following the news, shares of Investco plummeted by 10 percent during early trading hours.
Prosecutors have indicated that there were significant, unwarranted spikes in trading volumes and stock prices on Borsa Istanbul, which resulted in financial losses for smaller investors, as reported by the state-owned agency, referencing a statement from prosecutors.
In addition, it was revealed that the funds obtained from these transactions were laundered, in contravention of Turkey’s capital markets regulations, Anadolu reported.
At the time of Reuters’ inquiry, representatives from Investco were unavailable for comment.
Prosecutors’ statements are frequently disseminated through Anadolu.