InvestorQ : Can SEBI take over the management of Templeton Mutual Fund to protect the interests of the unit holders? It is like what RBI did with Yes Bank to protect depositors.
Crowny Pinto made post

Can SEBI take over the management of Templeton Mutual Fund to protect the interests of the unit holders? It is like what RBI did with Yes Bank to protect depositors.

Answer
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6 months ago


I think you are referring to the superseding the management of the fund and there is no such precedent in India. However, broker lobby (ANMI) has called for a high level SEBI-appointed panel to take over the management of Franklin Templeton Mutual Fund to protect the interests of unit holders. Currently, Templeton has total AUM of Rs.116,000 crore of which nearly Rs.30,000 crore are in the 6 schemes that have been wound up. That still leaves nearly Rs.86,000 crore in running schemes. ANMI has expressed apprehension that any delay could lead to a run on other schemes forcing a sort of discount sale by these funds. In the event, small investors may end up at the receiving end.