Franklin Templeton says complied with conditions prescribed in SAT order

IANSUpdated: Sunday, July 18, 2021, 09:41 PM IST
article-image
On June 28, SAT had stayed SEBI's decision to bar Franklin Templeton India from launching new debt schemes for two years. |

Franklin Templeton Asset Management (India) has said that it has complied with the conditions prescribed by the Securities Appellate Tribunal (SAT) in its order pertaining to the restrictions imposed by SEBI on the fund house.

On June 28, SAT had stayed SEBI's decision to bar Franklin Templeton India from launching new debt schemes for two years.

In a letter to investors, Sanjay Sapre, the President, Franklin Templeton Asset Management (India) Pvt. Ltd. said: "The restriction on launching any new debt schemes for a period of two years shall remain stayed during the pendency of the appeal. We have complied with the conditions prescribed in the SAT order and the matter is listed on August 30, 2021, for further hearing."

On the Supreme Court's July 14 judgment on the winding up of schemes, Sapre that the judgement confirms the decision of the High Court of Karnataka that the Trustee has the authority to take a decision to wind up a scheme under regulation 39 (2) (a), but must seek investor consent under regulation 18 (15)c after taking such a decision.

"The court further clarified that such a scheme shall remain closed for redemptions pending the outcome of the unitholder vote. As you are aware, after obtaining permission from the SC, the Trustee had sought permission of the unitholders to wind-up the schemes.

"We believe the judgement of the Supreme Court offers much needed clarity on the winding-up process."

The letter further said that the shut schemes have disbursed Rs 17,778 crore as of June 30, 2021. A further Rs 3,303 crore is in the process of being disbursed this week which brings the total disbursal to Rs 21,080 crore.

The total amount disbursed equals 84 per cent of the AUM as on April 23, 2020, and ranges from 62 per cent to 99 per cent across the six schemes.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

TCS shares face capital decline and 5% drag in market

TCS shares face capital decline and 5% drag in market

Vistara becomes only Indian airline on the list of world’s top 20, topped by Qatar Airways for 2nd...

Vistara becomes only Indian airline on the list of world’s top 20, topped by Qatar Airways for 2nd...

Indians continue to see real estate as a preferred asset for investment, as 50% expect rates to...

Indians continue to see real estate as a preferred asset for investment, as 50% expect rates to...

GST authority send Rs 21,000 crore notice to rummy developer Gameskraft, as it bets against online...

GST authority send Rs 21,000 crore notice to rummy developer Gameskraft, as it bets against online...

Investors lose Rs 7 lakh crore to freefall in Indian markets, with further interest rate hikes on...

Investors lose Rs 7 lakh crore to freefall in Indian markets, with further interest rate hikes on...