Representational Image
Representational Image

Franklin Templeton extended an olive branch to market regulator Securities and Exchange Board of India (Sebi) by issuing an unconditional apology. This apology was issued after Franklin Templeton’s chief blamed the regulator for tightening norms that contributed to winding up of schemes.

This comment did not go well with the market regulator who advised the fund house to focus on paying up the money to the investors. When the regulator reacted to Jenny Johnson, president and CEO, Franklin Templeton statement, the company said her statement was quoted ‘out of context’ by media outlets.

“We deeply regret any unintended slight this may have caused to the esteemed offices of Sebi whom we have always held in the highest regard and unconditionally apologise for the same,” said Sanjay Sapre, President, Franklin Templeton AMC, the domestic arm of the global asset manager.

Due to illiquidity and redemption pressures at this time of pandemic, Franklin Templeton India had to wind up six of its debt schemes on April 23. However, Johnson, in the second quarter earnings which took place on May 1, blamed Sebi's norms for this. In the analysts’ call, she could be heard saying, “Unfortunately, Sebi came out with new guidelines saying that any investments in unlisted instruments in funds can’t have more than 10 per cent in a fund, and you can’t trade them. So that orphaned about a third of our fund there.”

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