SPK fines man for stock market manipulation via social media advice
ANKARA
The Capital Markets Board (SPK) has issued a substantial fine of around 3.9 million Turkish Liras ($141,200) on an individual with a significant following on social media for alleged stock market manipulation through advice provided to his followers.
The fine comes as a result of Halil İbrahim Babadağı's recommendations to buy or hold certain stocks on his social media account.
The SPK's decision to impose this penalty follows an investigation carried out between July 3 and 17.
Babadağı faced the fine for selling shares of Oyak Cement Factories, Martı Hotels & Marinas, Europen, Alarko Real Estate Investment Trust, Tureks Tourism, Petkim Holding, Galata Wind Energy, Karsan Automotive and Aksa Energy, after providing buy or hold recommendations on social media platforms.
The action by the SPK is grounded in the Market Disruptive Actions Communiqué numbered VI-104.1. According to the fourth paragraph of the sixth article of this communiqué, it is considered a market-distorting act when individuals make comments or recommendations about capital market instruments through various forms of mass media, such as newspapers, television or the internet. The communiqué stipulates that individuals must refrain from selling or buying these instruments for five business days after issuing a buy or hold recommendation or a sell recommendation.
SPK head İbrahim Ömer Gönül, in a recent statement, has expressed the board's determination to crack down on market manipulation through social media. They had detected instances of shares being manipulated under the guise of educational content on social media platforms, he said.
Gönül emphasized that the SPK would continue to take stringent measures and demand the closure of accounts that mislead investors and distort market dynamics.
