Kazakhstan’s Financial Regulator Probes Bond Market Manipulation Cases

Investigation into Potential Bond Price Manipulation by Firms Linked to Timur Turlov

The financial regulator of Kazakhstan has launched an investigation into potential manipulation of bond prices by firms linked to billionaire Timur Turlov, according to sources familiar with the matter.

Key Details of the Investigation

• The inquiry centers on transactions that took place last fall involving securities issued by Kazakhstan Sustainability Fund JSC, a state entity controlled by the central bank.
• Freedom Holding, owned by Turlov, owns Kazakhstan’s largest brokerage firm and served as an underwriter and market-maker for some of the bonds.

Facts Surrounding the Transactions

• Only one other Kazakh broker was involved in the transactions, which were conducted through various trading platforms.
• The regulator is scrutinizing trades carried out by firms including those run by Turlov to determine whether they engaged in market manipulation.

Potential Consequences of Market Manipulation

• If found guilty, the firms could face penalties and fines.
• The investigation is ongoing, and no charges have been filed yet.

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