franklin templeton said sebi’s order does not affect existing schemes
SEBI on Monday barred Franklin Templeton Asset Management Company (India) from introducing any new debt scheme for two years. Apart from this, a fine of Rs 5 crore has also been imposed on the company for violation of regulatory norms in the matter of winding up six debt schemes.
Along with this, the company has also been asked to return with interest Rs 512 crore raised as investment management and consulting fees in respect of six loan schemes.
As per the SEBI order, this amount will be used for payment to the unit holders. SEBI maintains that there are serious deficiencies in the classification of the scheme by Franklin Templeton AMC and the company has violated the norms by not exercising the issue option.
However, Franklin Templeton Asset Management (India) has decided to challenge the Securities and Exchange Board of India’s (SEBI) order in the Securities Appellate Tribunal (SAT).
Franklin Templeton AMC Chairman Sanjay Sapre said in an e-mail to investors on June 8 that the Sebi order will not have any impact on the current monetization process of six debt schemes.
“The order does not pertain to other debt, equity, hybrid and offshore schemes managed by Franklin Templeton and shall have no effect,” he said.
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