Franklin continues to handle greater than Rs 61,000 crore for greater than 20 lakh buyers.
Franklin Templeton India informed buyers on Wednesday that the market regulator’s ban on its launching new debt funds would haven’t any influence on current funds that handle $8 billion in property.
The Securities and Exchange Board of India (SEBI) on Monday barred Franklin from launching any new debt schemes for 2 years after a probe into its sudden closure of six credit score funds final 12 months discovered “serious lapses and violations.”
Franklin has stated it strongly disagreed with SEBI’s order and deliberate to attraction it. In an e-mail to buyers on Wednesday seen by Reuters, the fund home sought to reassure buyers about any broader influence its different funds.
“I would like to clarify upfront, that the SEBI order has no impact on other schemes managed by Franklin,” India President Sanjay Sapre stated within the e mail.
Franklin continues to handle greater than Rs 61,000 crore ($8.36 billion) for greater than 20 lakh buyers in India, he added.
Franklin has confronted regulatory probes and courtroom battles since April 2020 when it unexpectedly wound up six credit score funds in India with property of near $4 billion, citing a scarcity of liquidity amid the coronavirus pandemic. Those funds had giant publicity to higher-yielding, lower-rated credit score securities.
In the Monday order, SEBI additionally ordered the fund home to refund funding and advisory charges, together with curiosity, of greater than Rs 500 crore ($68.51 million), and fined the worldwide big one other Rs 5 crore.
One senior fund supervisor, who declined to be named, informed Reuters that cash managers grew extra cautious about funding selections after the SEBI order.
“SEBI now is not leaving any room for any deviation and it’s becoming very strict … there is a heightened level of alertness and attention that has come,” the supervisor stated.
