Franklin Templeton disagrees with SEBI order; to move SAT

Franklin Templeton disagrees with SEBI order; to move SAT

SEBI, on Monday, barred Franklin Templeton Asset Management (India) from launching any new debt scheme for two years

New Delhi, June 8

Franklin Templeton Asset Management (India) on Tuesday said it strongly disagrees with the findings of SEBI’s order in the case of winding of six debt schemes in 2020 and has decided to challenge the direction in Securities Appellate Tribunal (SAT).

The SEBI, on Monday, barred Franklin Templeton Asset Management (India) from launching any new debt scheme for two years and imposed a penalty of Rs 5 crore for violating regulatory norms in the case of winding up of six debt schemes in 2020.

Also, it has been asked to refund investment management and advisory fee of over Rs 512 crore (including interest) collected with respect to the six debt schemes. This amount will be used to repay unitholders, as per the SEBI order.

A Franklin Templeton spokesperson said, “We strongly disagree with the findings in the SEBI order and intend to file an appeal with the Securities Appellate Tribunal”.

He further said Franklin Templeton places great emphasis on compliance and believes it has always acted in the best interest of unit holders and in accordance with regulations.

The SEBI found that Franklin Templeton AMC has committed serious lapses/violations with regard to a scheme categorisation (by replicating high-risk strategy across several schemes). — PTI

The case file

  • SEBI, on Monday, barred Franklin Templeton Asset Management (India) from launching any new debt scheme for two years
  • It also imposed a penalty of Rs5 crore for violating regulatory norms in the case of winding up of six debt schemes in 2020

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