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(Representative image)
NEW DELHI: Franklin Templeton Mutual Fund On Friday, it issued an unconditional apology to market regulator Sebi (Securities and Exchange Board of India) over statements made by its president and CEO Jennifer M Johnson that the new regulatory guidelines led to the closure of its six debt funds last month.
“We deeply regret any inadvertent slights this may have caused to the esteemed Sebi offices, whom we have always held in the highest esteem and unconditionally apologize for the same,” Templeton said in a statement.
The fund house also said Johnson had provided general information about Franklin Templeton’s experience in the Indian market as it existed prior to Covid-19. The reference to the regulations on unlisted securities was intended to be part of these background statements to provide context to an audience unfamiliar with Indian markets, he added.
The statement comes a day after Sebi heavily criticized Templeton’s global boss for his comments and asked the fund house to focus on returning the money to investors stuck in the discontinued plans “as soon as possible.” .
Referring to the comments, the regulator had noted that “in light of the credit events since September 2018 (after IL&FS defaulted), which led to challenges in the corporate bond market, the need was felt to revise the framework for mutual funds and take the necessary measures to safeguard the interests of investors and maintain the order and soundness of their investments. ”
In his statement, Franklin Templeton further noted that he is working closely with the trustees and is committed to ensuring an orderly and equitable exit for all investors as soon as possible.
On April 24, the fund house had decided to close six of its debt funds managing nearly Rs 25.9 billion, citing liquidity problems in the bond market caused by problems related to Covid.
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