Sebi Bars Franklin India From Offering Debt Funds for Two Years

(Bloomberg) -- India’s market regulator barred Franklin Templeton from offering new debt funds for two years, following a probe into the asset management company’s shutting of six funds last year.

Franklin would also have to refund management and advisory fees collected for the funds between June 2018 and April 2020, according to an order by the Securities and Exchange Board of India. The regulator also imposed a monetary penalty of 50 million rupees ($686,530) to be paid to the government.

Franklin Templeton wound up $4.1 billion of Indian debt funds after a liquidity crisis compelled the firm to freeze investor withdrawals in the South Asian nation. The decision then marked the biggest-ever forced closure of Indian funds and fueled worries of a renewed wave of withdrawals from similar products.

The regulator separately barred Franklin’s Vivek Kudva, and Roopa Kudva from accessing the securities market for a period of one year, besides imposing a combined penalty of 70 million rupees.

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