InvestorQ : How long do you see the Templeton case dragging along? Do you see Templeton looking for legal recourse?
Dilmini Mercia made post

How long do you see the Templeton case dragging along? Do you see Templeton looking for legal recourse?

Answer
image
Dawn Cherian answered.
6 months ago
Follow

As of now it does look like Templeton would adopt the legal course and even approach SAT against the SEBI order. But ideally, it is time for Templeton, US to intervene and put this to rest. If you leave aside the jargon and the fine hair splitting, it is quite clear that the Templeton fund managers have a lot to answer. Here are a few instances.

· Templeton claims Rs.17,700 crore out of Rs.25,000 crore or 71% returned. But that is half-truth. Even this happened only because Supreme Court intervened and appointed SBI MF to administer the monetization and the refunds. By saying 71%, they are asking for Rs.25,000 crore of free money for a period of 15 months. That is ridiculous.

· Even now, Templeton has not be able to give an estimate of the total haircut needed to be taken. Obviously, the low hanging fruit is done and dusted but there is no official word on that. Will unit holders still have to contend with effective haircuts of over 40%. That would be an awful end to the story.

· The first thing Templeton must do is to stop using the rule book to their advantage. Clearly trustees did not do their job and fund managers were privy to information which they used for personal gains. Above all, the way the fund delayed refunding money to investors showed arrogance of a high order. That was clearly wrong.

In the last few years, we have seen scores of big global fund names like Morgan Stanley, JP Morgan, Deutsche, Zurich, Goldman Sachs and the redoubtable Fidelity Investments exit the Indian mutual fund business. Templeton was the last of the big global names with a sizable AUM. They should not fritter away that advantage.

1 Views