Franklin Templeton India’s apology to SEBI

All kinds of things happening.

On 30 Apr 2020, FT’s Global head. Ms. Jenny Johnson blamed SEBI’s guidelines on unlisted securities for the failure of the six funds.  This created furore in Indian markets.

FT India office had to issue an apology to SEBI:

In response to a question regarding the winding up of six schemes offered in India, Ms. Johnson provided general background concerning Franklin Templeton’s experience in the Indian market as it existed before COVID-19. The reference to the regulations around unlisted securities was intended to be a part of these background statements to provide context to an audience unfamiliar with Indian markets.

As per our notice and all communications issued to date, and as stated by Ms. Johnson in her remarks, the primary reason which forced the decision to wind up these six schemes was the severe market dislocation caused by the COVID-19 pandemic and related lockdown which led to severe market illiquidity particularly for papers rated below AAA, combined with heightened redemptions during this period.

Franklin Templeton would like to highlight that every possible option to avoid this difficult decision was considered, but it was concluded that this was the only viable option to protect value for investors in these funds. Working closely with the Trustees, the firm is committed to ensuring an orderly and equitable exit for all investors at the earliest possible time.

Franklin Templeton has a long history of over 25 years in India, where a third of our global workforce is based, and the firm remains fully committed to our clients and our business in India.

We deeply regret any unintended slight this may have caused to the esteemed offices of SEBI whom we have always held in the highest regard and unconditionally apologize for the same.


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