Franklin Templeton Asset Management Company has decided to challenge the allegation of regulatory violations leveled by SEBI. According to the company, they do not agree with SEBI.
Franklin Templeton Company opposes SEBI’s decision
On Monday, Franklin Templeton Asset Management (India) was fined Rs 5 crore for violation of regulatory norms by the Securities and Exchange Board of India (SEBI). Along with this, the company’s decision to close the first 6 debt or bond schemes was wrong and directed to take action on it. However, the company on Tuesday decided to challenge this decision of SEBI and asked to present the matter in the Securities Appellate Tribunal (SAT).
Franklin Templeton Company expressed dissatisfaction with the SEBI order. A company spokesperson said, “We do not agree with the findings of the SEBI order. We intend to file an appeal against this in the Securities Appellate Tribunal. Franklin Templeton always attaches great importance to compliance. Also, the company has always been working in the interest of the unitholders as per the regulations.
It is to be known that SEBI on Monday barred Franklin Templeton Asset Management (India) from introducing any new loan scheme for two years. Because on 23 April 2020, 6 debt schemes with assets of about Rs 26,000 crore were closed by the company. Franklin Templeton cited lack of money as the reason. However, SEBI believes that there has been a serious lapse in the debt scheme on the part of the company which is against the rules. Therefore, Franklin Templeton Asset Management was directed to refund the management and advisory fees taken during 2020 with 12% interest, the total value of which is Rs 512 crore.
These schemes were closed
The schemes that Franklin Templeton closed in April include Ultra Short Bond Fund, India Loan Duration Fund, India Dynamic Accrual Fund, India Credit Risk Fund and India Short Term Income Plan. The fund house says that the schemes should be closed. The decision was taken only to save value for the unitholders.
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