Vivek Kudva, Head of Franklin Templeton Asia Pacific, plans to move the Securities Appellate Tribunal against the Sebi order levying a penalty of ₹7 crore on him and his wife besides ordering him to transfer ₹31 crore realised by redeeming just before the six debt schemes were suspended from trading.

Kudva has claimed that he has already set aside the proceeds from the sale of units and will not enjoy more than what other investors in the scheme get after the closure of the schemes. This apart, Sebi has also banned Kudva from accessing capital market for one year.

“I have the highest regard for SEBI. However, I am reviewing the order and considering appropriate next steps which may include filing an appeal before the Securities Appellate Tribunal,” said Kudva in a statement on Tuesday. “I have always acted in accordance with Sebi regulations, including in this instance. My personal transactions in the two schemes (under winding-up) have been conducted in good faith and with no intent to gain unfair benefit,” he added.

As stated in the SEBI order, he said "I had already placed myself in a similar position as investors in April 2020 and the proceeds of the redemptions were voluntarily set aside such that I and my family will ultimately receive no more than the investors remaining in the Schemes." My interests therefore remain fully aligned with outcomes that investors in the two schemes under winding up will have, said Kudva.

Emphasis on compliance

Meanwhile, a Franklin Templeton spokesperson said the fund house has placed great emphasis on compliance and have policies in place to cover a variety of matters including personal transactions of employees and managing conflicts of interest, consistent with applicable regulations and global best practices.

The schemes under winding up continue to have significant investments from employees and management, as well as from the asset management company and other group companies of Franklin Templeton, he said.

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