SAT grants interim relief to Franklin Templeton against SEBI orders

Mumbai, June 28 (SocialNews.XYZ) The Securities Appellate Tribunal (SAT) on Monday granted interim relief to Franklin Templeton in terms of SEBI's recent orders against the fund house.

The appellate tribunal will next hear the matter on August 30.

SAT has stayed the SEBI order restraining Franklin Templeton from launching new debt schemes for two years. It has, however, asked the asset management company to deposit Rs 250 crore in three weeks in an escrow account.

Commenting on the development, a Franklin Templeton spokesperson said: "With reference to the order issued by Whole Time Member (WTM) of SEBI on June 7, 2021, Franklin Templeton Asset Management (India) Pvt. Ltd filed an appeal and an application for stay before the Securities Appellate Tribunal (SAT)."

"After hearing the parties, the SAT has stayed the operation of the order passed by the WTM. The matter is listed on August 30, 2021 for further directions," the spokesperson said.

On June 7, SEBI had barred the fund house from launching any new debt scheme for two years, along with imposing a penalty of Rs 5 crore for violation of regulations in the shutting down of six debt schemes last year.

In its order, the capital market regulator said that Franklin Templeton Mutual Fund has been found to have violated the provisions of the Mutual Funds Regulations and also certain SEBI circulars.

Further, on June 14, SEBI imposed penalties on Franklin Templeton Trustee Services and the CEO Franklin Templeton Asset Management (India), Sanjay Sapre among other key officials in the matter of winding of six debt schemes last year.

Source: IANS