The Securities Appellate Tribunal (SAT) on Monday stayed a SEBI order that had barred Franklin Templeton Asset Management (India) from unveiling new debt schemes for two years and had asked the fund house to refund a little over ₹512 crore. The appeal was filed against an order passed by SEBI on June 7, which said Franklin Templeton violated certain provisions of mutual funds norms in relation to the management of the six debt schemes, which are now shut. Through the order, Franklin Templeton was directed to refund investment management and advisory fees along with interest at 12% a year, amounting to ₹512.5 crore. In its order, the SAT noted that 21 debt schemes were still being managed by Franklin Templeton and no complaint on these schemes had come to the fore. “The mere fact that the appellant (Franklin Templeton) [has] chosen to wind up six schemes does not mean that they should be debarred from launching any new debt schemes,” the SAT added.

Source: The Hindu June 28, 2021 23:15 UTC