Franklin Templeton case: SAT stays SEBI's order preventing FT from launching new debt scheme; relief in Rs 520 crore recovery; next hearing on THIS date

Franklin Templeton Sebi SAT News: Franklin Templeton (FT) has got much needed interim relief from the Securities Appellate Tribunal (SAT) on Monday. The appellate tribunal has stayed Securities Exchange Board of India's (SEBI) order that prevented Franklin Templeton from launching new debt scheme. The tribunal has also temporarily stayed the SEBI's order of recovery of Rs 512 crore from Franklin Templeton while directing it to deposit Rs 250 crore in three weeks.  

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The next hearing on the Franklin Templeton-SEBI's matter has been deferred to August 30. The order passed by the SAT on Monday will be applicable until further orders from the Securities Appellate Tribunal.  

Earlier, SEBI had slapped a penalty of Rs 5 crore and ordered to disgorge Rs 512 crore investment management by the fund house for managing six suspended schemes.

The Securities Appellate Tribunal order comes after FT challenged the Securities and Exchange Board of India’s directive. Earlier, the SAT after hearing the arguments of both sides on June 25 had reserved its order.

In a similar development related to FT, Sebi had imposed a penalty of Rs 15 crore on senior officials of Franklin Templeton AMC and its trustee for violating regulatory norms in the case of winding up of six debt schemes in 2020, PTI had reported.  

"A fine of Rs 3 crore has been levied on Franklin Templeton Trustee Services Pvt Ltd and Rs 2 crore each on Franklin Asset Management (India) Pvt Ltd President Sanjay Sapre and its Chief Investment Officer Santosh Kamat, according to a Sebi order," said the news agency report earlier on June 14.  

The schemes – 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 – together had an estimated Rs 25,000 crore as assets under management.