MSCI issues critical warning to Türkiye

The decision was driven by concerns over potentially coordinated trading through investment funds linked to some small-cap companies, as well as questions surrounding the reliability of free-float ratios. Under the measures, additions of new stocks to MSCI Türkiye indexes, certain changes that could increase the index weightings of existing constituents, and upgrades to higher market segments have been suspended.

While MSCI welcomed regulatory measures taken in Türkiye, it emphasized the need for further progress in market transparency and oversight. The index provider stated that if sufficient improvements are not achieved by June 2027, it could initiate a review of Türkiye's current emerging market classification, potentially considering a reclassification to frontier market or standalone market status. Türkiye's market classification remains unchanged for now, but the decision is considered significant for international funds investing in Turkish equities.