InvestorQ : Is the SEBI order a little unfair to Templeton since it is just too harsh?
rhea Babu made post

Is the SEBI order a little unfair to Templeton since it is just too harsh?

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Riya Dwivedi answered.
6 months ago
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I think SEBI may have acted a little tough as a deterrent measure to avoid such repeat instances in the future. This order will impel other mutual funds to re-look at asset selection and also how they treat investors. SEBI has pointed to the big gaps in decision-making process at Templeton and also the cavalier manner on how officials treated their investors and kept their money locked in for over 1 year in an arbitrary manner.

With $420 billion AUM, Indian mutual funds cannot afford any action by funds that impacts the trust of investors. To that extent, this will be a major deterrent. However, there is a lesson for investors too. Mutual funds are becoming more complex and products more specialized. There must be a lot more thinking before taking investment decisions.

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