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In a major relief, the Securities Appellate Tribunal (SAT) has stayed the SEBI penalty on Franklin Templeton for closing six debt funds abruptly.
Early this month, SEBI levied a penalty of ₹5 crore and ordered to disgorge the ₹512-crore advisory fee charged by Franklin Templeton India for managing the six suspended schemes.
Franklin Templeton gets ₹1,261 crore in six debt schemes
Following this, SAT will get into the objections raised by the fund house on the findings of SEBI in its order. Franklin Templeton Trustees and eight employees, who have also been fined, have also approached SAT against the order on penalty.
Reacting to the development, a Franklin Templeton spokesperson said that with reference to the order issued by Whole Time Member, G Mahalingam, of SEBI, Franklin Templeton Asset Management filed an appeal and an application for stay before the Securities Appellate Tribunal.
After hearing arguments on both sides, SAT has stayed the operation of the order passed by the WTM. The matter has been listed for August 30 for further directions, he said.
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