InvestorQ : Why is Franklin Templeton looking to appeal against the SEBI order?
Dawn Cherian made post

Why is Franklin Templeton looking to appeal against the SEBI order?

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Mitali Bhutta answered.
4 weeks ago
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Franklin Templeton Mutual Fund has moved the Securities Appellate Tribunal or SAT against the SEBI order dated 07 June imposing a penalty of Rs.5 crore on the AMC and directing the AMC it to disgorge Rs.512 crore of AMC fees collected during this period. SAT is expected to pass an order next week on whether the plea can be admitted or not. SEBI had come down heavily on the fund for lapses in process and also alleged irregularities in compliance.

SEBI specifically came down heavily on the decision by the fund management team to rely on high risk strategies with the tacit approval of the AMC. SEBI also criticized the fund for lapses in monitoring and managing critical risk points pertaining to liquidity, credit and concentration. However, the fund house has stoically tried to defend its decision to shutter the 6 funds without any advance notice, except to the CEO who exited his funds on time.

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