Franklin Templeton has also been ordered to refund the management and advisory fees collected in the six shut schemes between June 4, 2018 and April 23, 2020. “The Noticee i.e. FT–AMC, shall be prohibited from launching any new debt scheme(s)for two years from the date of this Order. Further, in respect of the category of the six debt schemes inspected under winding up, the prohibition on launching of new debt scheme(s) shall come into effect from the date on which the said schemes cease to exist as per Regulation 42 of the Mutual Funds Regulations,” Sebi said in the final order.
Sebi also put out a strong message by saying that serious violations were committed by the senior management of the fund house. The market regulator has decided to penalise the former head of Franklin Templeton Asia Pacific, Vivek Kudva and his wife Rupa Kudwa, former MD of Omidyar Network India.
Vivek Kudwa and Roopa Kudwa have been restricted from accessing the securities market and from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of one year. They have also been restricted from liquidating their existing holding of securities including the units of mutual funds.
Sebi also said that Vivek Kudwa shall be liable to pay a monetary penalty of Rs 4 crores for the redemptions undertaken on his own behalf and on behalf of Vasanthi Kudwa and Roopa Kudwa shall be liable to pay a monetary penalty of Rs 3 crores for the redemptions from her account.
