Franklin Templeton Mutual Fund: Sebi defends its circular, asks Franklin to focus on returning investor money



The Securities and Exchange Board of India (Sebi) has “advised” Franklin Templeton Mutual Fund to focus on returning the money that has been stuck following the winding up of the six debt schemes to its investors. The regulator, in a late release on Thursday, defended its October circular that required liquid schemes to cap their holdings of unlisted non-convertible debentures (NCDs) at 10% of the corpus.

On Wednesday, Franklin’s global chief, in a conference call with analysts, said the rule “orphaned” one-third of their funds as these unlisted NCDs could not be traded after the circular.

Sebi said on Thursday the deadline to comply with these rules were subsequently extended after the turmoil in the debt market triggered by Covid-19.

“Despite the regulations being clear, some mutual fund schemes seem to have chosen to have high concentrations of high-risk, unlisted, opaque, bespoke, structured debt securities with low credit ratings and seem to have chosen not to rebalance their portfolios even during the almost 12 months available to them so far,” said the release.

“In the current scenario, Franklin Templeton should focus on returning the money of investors as soon as possible.” About Rs 26,000 crore of investor money has been blocked in these six Franklin debt schemes.


Source link


Italian season in limbo with new wave of positive coronavirus tests – football

Accumulation of gene mutations in chronic Graft-versus-host disease — ScienceDaily