InvestorQ : What has been the issue between SEBI and the global head of Franklin Templeton Mutual Fund?
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What has been the issue between SEBI and the global head of Franklin Templeton Mutual Fund?

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8 months ago
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The problems after the global CEO of Franklin Templeton, Jennifer Johnson, blamed SEBI for the Templeton crisis putting the onus on the SEBI decision to reduce unlisted holdings to 10% in a phased manner. However, after SEBI objected to these statements made by Johnson, Templeton India has tendered an unconditional apology to the market regulator. The fund house claimed that media outlets quoted Jennifer Johnson out of context but it was clearly a salvage exercise, which is already going to have some tough questions to answer to the regulator about the way it summarily shut down the six funds. However, Johnson had used the word “Orphaned” for the unlisted stocks. That was incorrect because SEBI had not only permitted grandfathering of old investments but also offered an extension. However, the real problem with the Templeton funds was the quality of assets held. SEBI did not take kindly to the remarks by the global CEO of Franklin. SEBI clarified that taking on credit risk was a conscious call made by the funds and SEBI only provided guidelines.

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