SEBI has imposed a fine of Rs 15 crore on senior officers and trustees of Franklin Templeton AMC.
New Delhi. Markets regulator SEBI on Monday imposed a fine of Rs 15 crore on senior officials of Franklin Templeton AMC and its trustees. This penalty has been imposed in the case of violation of regulatory rules in closing six debt schemes in the year 2020.
The SEBI order states that Franklin Templeton Trustee Services Pvt. Ltd. A fine of Rs 3 crore has been imposed on him. Apart from this, Sanjay Sapre, Chairman of Franklin Asset Management (India) Private Limited and its Chief Investment Officer Santosh Kamat have been fined Rs 2 crore each. Along with this, SEBI has imposed a fine of Rs 1.5 crore each on Kunal Agarwal, Sumit Gupta, Pallab Roy, Sachin Padwal Desai and Umesh Sharma, who were the fund managers of the scheme at the time of the violation. SEBI has imposed a fine of Rs 50 lakh on Saurabh Gangrade, the then Chief Compliance Officer of the company. These people have been asked to pay the fine within 45 days.
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SEBI has noted that the trustees of Franklin Templeton Mutual Fund are professionals in their field and have expertise in their respective fields of work, yet they have failed to plug the loopholes in the working of mutual funds. Franklin Templeton MF Ltd. had closed six debt mutual fund schemes on 23 April 2020. The company had said that it has closed the schemes in view of the lack of liquidity in the bond market and redemption pressure. The six discontinued schemes include Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.