Read more about No adverse findings so far: Franklin Templeton MF on money laundering on Business Standard. The fund house had shuttered its six debt schemes in April last year due to the severe market dislocation and illiquidity caused by the Covid-19 pandemic
SEBI probing if Franklin exceeded borrowing limits
March 11, 2021
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To meet redemptions in 6 debt schemes
SEBI is investigating if Franklin Templeton Mutual Fund (FTMF) borrowed far beyond what it was permitted and how it managed to subsequently get a ‘special permission’ to enhance its borrowing limit, mainly to meet the redemptions in the six debt schemes that were shut in April 2020.
This has been revealed in investor complaints to the Finance Ministry, the Central Vigilance Commission (CVC) and SEBI’s vigilance department highlighting that FTMF got special permission to hike the borrowing of the debt schemes from 30 per cent to 40 per cent just one day before it announced the controversial decision to shut them. The complaints have drawn data from FTMF’s own disclosures to the court including SEBI’s special permission.
Franklin’s debt schemes were in red months ahead of shutdown
March 08, 2021
Disclosures, court filings reveal 91% of investments of the schemes were in ‘illiquid securities’
Franklin Templeton Mutual Fund (FTMF) was in trouble several months ahead of its actual decision to shut the six debt schemes. Data accessed by BusinessLine from disclosures made by FTMF and court filings by investors reveal that even as of September 2019, over 91 per cent of the investments of the six debt schemes were into ‘illiquid securities’ from which it was difficult to retrieve money.
FTMF closed six debt schemes on April 22, 2020 giving the Covid-induced economic slowdown as the key reason for the losses.
Franklin Templeton MF: SC Reserves Order after Completing 1st Phase; Next Hearing in July moneylife.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneylife.in Daily Mail and Mail on Sunday newspapers.
In the show-cause notices to Franklin Templeton AMC and its trustees, the regulator alleged code of conduct violations said people with knowledge of the matter.