Turkish AK Party said about to submit defence

ANKARA (Reuters) - Turkey's ruling AK Party will submit on Monday its defence in a court case aimed at banning the party for alleged Islamist activities, an AK Party source told Reuters.

The party, which denies charges of anti-secular activities laid out by a top prosecutor, has until the end of June to hand in its defence to the Constitutional Court, but wants the case to be wrapped up as soon as possible to minimise instability.

The source, who declined to be named, said it would be handed in at around 12 p.m. British time.

The case, which also aims to ban 71 members including Prime Minister Tayyip Erdogan from party politics for five years, has rattled investors who fear months of political uncertainty and the possibility of early elections.

Turkey's government is at odds with the secular establishment, which includes the powerful military and judiciary, over the role of Islam in the European Union candidate country. The AK Party has its roots in political Islam but is also a reformist, pro-business party.

Analysts say the likelihood of the AK Party being closed down has increased since the Constitutional Court overturned a government-led move to allow students to wear the Muslim headscarf at university.

The headscarf reform was seen as the catalyst for the closure case and the party's attitude towards the controversial garment is a pillar of the closure case indictment.

Senior party members told Reuters in May -- even before the headscarf ruling -- that the party had started to expect to be closed down.

The case, which has also drawn sharp criticism from the European Union, moves on to the hearings stage after the party's defence is presented. A preliminary defence was presented to the Constitutional Court at the end of April.