InvestorQ : What do you see as the outcome of the SEBI order on Templeton Mutual Fund?
diksha shah made post

What do you see as the outcome of the SEBI order on Templeton Mutual Fund?

Answer
image
1 week ago
Follow

It is a fairly elaborate and significant order. It has not happened in the past that such a huge penalty has been imposed on an Indian mutual fund. In an extremely significant order, SEBI has banned Vivek Kudva of Franklin Templeton and his wife Roopa Kudva, from accessing capital markets for 1 year. This was for redeeming FT units just before the debt funds were shuttered in April 2020. Roopa Kudva used to head Omidyar Networks in India.

The Kudva family, apart from the penalty of Rs.7 crore, has also been directed by SEBI to disgorge Rs.22 crore of redemption amount into a separate bank account till a final decision is taken on the subject. In addition, Franklin Templeton Mutual Fund has been barred from launching any new debt fund scheme for next 2 years. SEBI also imposed a penalty of Rs.5 crore and ordered disgorgement of management fee of Rs.512 crore earned by the AMC since 2018. The order could be challenged in the SAT and also the courts.

1 Views