The Turkish Capital Markets Board has published revised guidelines for investment funds, introducing a new framework for hedge funds.

Key provisions include limits on a hedge fund's exposure to a single issuer's free-float shares relative to the issuer's free-float ratio, caps on total holdings by funds managed by the same manager or sponsored by the same entity, and a requirement that sponsors seek a 10% increase in cash capital if hedge funds account for more than half of their average monthly assets under management.

The rules also set a cap on the number of hedge funds and private funds that a portfolio management company may oversee, tied to the number of portfolio managers employed.

Existing holdings that exceed the new limits as of August 29 may be kept but cannot be increased; excess positions must be reduced by at least one-third by October 31, by at least two-thirds by November 30, and fully brought into compliance by December 31.