Profit Sheets

Franklin Templeton India allays investors’ fears after new debt fund ban

June 10, 2021 01:44 PM

Franklin Templeton allays investors' fears after new debt fund ban
Franklin Templeton India told investors on Wednesday that the market regulator's ban on its launching new debt funds would have no impact

Franklin Templeton India told investors on Wednesday that the market regulator’s ban on its launching new debt funds would have no impact on existing funds that manage $8 billion in assets.

The Securities and Exchange Board of India (SEBI) on Monday barred Franklin from launching any new debt schemes for two years after a probe into its sudden closure of six credit funds last year found “serious lapses and violations.”

Franklin has said it strongly disagreed with SEBI’s order and planned to appeal it. In an e-mail to investors on Wednesday seen by Reuters, the fund house sought to reassure investors about any broader impact its other funds.

“I would like to clarify upfront, that the SEBI order has no impact on other schemes managed by Franklin,” India President Sanjay Sapre said in the email. Franklin continues to manage more than Rs 61,000 crore ($8.36 billion) for more than 20 lakh investors in India.

Also Read: India asks WTO members to finish TRIPS waiver on COVID-19 vaccines

Franklin has faced regulatory probes and court battles since April 2020 when it unexpectedly wound up six credit funds in India with assets of close to $4 billion, citing a lack of liquidity amid the coronavirus pandemic. Those funds had large exposure to higher-yielding, lower-rated credit securities.

In the Monday order, SEBI also ordered the fund house to refund investment and advisory fees, along with interest, of more than Rs 500 crore ($68.51 million), and fined the global giant another Rs 5 crore.

Leave a comment

Market Live Updates


Intraday Tips
Stock Name Open Price Trend Details
Reliance 1930.10 Buy Click Here
Asian Paints 2577.00 Buy Click Here
HDFC 2448.00 Buy Click Here
HDFCAMC 2790.00 Buy Click Here
TCS 3120.00 Buy Click Here



NSE Top Gainers/Losers
COMPANY LTP %CHNG VOLUME
HINDALCO 417.95 4.47 1,41,13,388
BAJFINANCE 6,303.05 2.28 10,11,507
TATASTEEL 1,327.20 2.25 37,39,538
SBIN
431.10
1.84 70,85,419
SBILIFE
1,095.80
1.78 31,12,583
COMPANY LTP %CHNG VOLUME
DRREDDY 5,354.15 -1.06 1,86,489
AXISBANK 748.35 -1.05 54,72,359
TECHM
1,108.95
-1.00 3,03,653
SUNPHARMA 697.85 -0.79 9,00,502
CIPLA
943.80
-0.71 4,16,800