The Franklin Templeton Asset Management (India) Private Limited filed an appeal before the SAT against the SEBI’s order directing to refund investment management and advisory fees along with interest at the rate of 12% per annum amounting to Rs. 512,50,92,534 within a period of 21 days. The order who prohibited them from launching new debt schemes for a period of two years and has further imposed a penalty of Rs. 5 crore.
The Supreme Court ordered that Franklin Templeton Asset Management India Pvt. Ltd. Will not announce any new debt scheme until the appeal pending before the Securities Appellate Tribunal gets disposed of.
The appeal being mentioned here has been filed before the SAT against the order dated June 7, 2021 passed by Whole Time Member of the Securities and Exchange Board of India holding that Franklin Templeton has violated certain provisions of the SEBI (Mutual Funds) Regulations, 1996 and circulars issued by SEBI in relation to the management of self debt schemes.
The Bench remained silent on other parts of the impugned order directing Franklin Templeton to pay 250 crore against demand of 512 crores as directed by SEBI.
The Bench further added that extra time of 4 weeks has been granted to the petitioner to file before the Tribunal. The court also requested the Tribunal to dispose of the main matter as expeditiously as possible.
The Bench stated that we are not worried about 250 or 500 crore. Public cannot be cheated and public should not be cheated.
Reported By – Prerna