InvestorQ : What are the main points of the SEBI order on Templeton Mutual fund?
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What are the main points of the SEBI order on Templeton Mutual fund?

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Riya Dwivedi answered.
2 months ago
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Let us first look at the order pertaining to the top management. The CEO, Vivek Kudva, was ostensibly aware of the mess in the 6 debt funds and he had made huge redemptions just before closing the funds, raising questions of fairness and transparency. SEBI has imposed a 1-year ban and monetary penalty on Vivek and his wife. In addition. Nearly Rs.22 crore of gains from the sale will be disgorged. Vivek is banned from stock markets for a year.

Now we turn to the AMC. There is also a penalty on the Templeton AMC as well as a ban on Templeton MF launching new debt funds for 2 years. The big shift was the disgorgement order. SEBI ordered disgorgement of Rs.520 crore of AMC fees that the AMC earned since 2018 and such amounts must also be paid back by the AMC to the investors for the bad management. It could be open to litigation.

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