Administrative Liquidation Process

The Fund is in charge of carrying out administrative liquidation operations of intermediary institutions. The objective of administrative liquidation, exempt from all other legal liquidation procedures, is to liquidate cash payment and stock delivery obligations to investors.

Administrative liquidation decision can be made by Capital Market Board. It is a special liquidation process for intermadiary institutions. Fund takes over the management of the intermadiary institution. It gives priority to investors where regular liquidation gives priority to other claimers. First advances from the Fund are paid to the investor, then assets of the intermediary institution are liquidated by the Fund. Liquidation balance is used to meet the claims of the investors, government and of the Fund respectively. The period of liquidation is shorter than the period of regular liquidation.