InvestorQ : What are the steps that Templeton must take to resolve the issue of the six funds quickly. Does SEBI have a role to play?
Chandralekha Desai made post

What are the steps that Templeton must take to resolve the issue of the six funds quickly. Does SEBI have a role to play?

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NISHA Nayak answered.
7 months ago
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There are some steps that Templeton needs to take and if Templeton does not take the steps, SEBI must step in to protect debt fund money. At least, there should be transparency. You would ideally expect Sapre to transparently explain the steps. Instead he has been trying to sweep it under the carpet, hiding behind legal niceties.

He claims six funds recovered Rs.8,500 crore from borrowers but that is obviously not the full story. What about the borrowings and that will tell us how much haircut the investors will eventually take up. Prima facie, haircut could be 70-75% but the CEO does not want to admit it publicly for fear of losing face.

The first thing SEBI must do is to appoint an independent valuer for transparent valuation of the portfolio. IT is also important to fix responsibility. Business risk is one side of the story and rash fund manager decisions are a different issue altogether. That is the issue here.

If Templeton is not willing to hold its gallivanting fund manager accountable, SEBI must do it. MF flows in India are already down and most MFs are on a selling spree. SEBI must intervene and take up the issue before it is too late to revive public confidence.

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