No plans to exit India business: Franklin Templeton’s Sajay Sapre

Franklin Templeton Mutual Fund on Friday said its commitment to India remains ‘steadfast’ and the fund house has no plans to exit its operations in the country

Topics

Franklin Templeton | Mutual Funds

Franklin Templeton Mutual Fund on Friday said its commitment to India remains ‘steadfast’ and the fund house has no plans to exit its operations in the country.

This comes following media reports suggesting intervention by the fund house’s US-headquartered parent seeking the diplomatic route for a “just and fair” hearing by market regulator Sebi in the investigation pertaining to six wound-up debt schemes.

According to the reports, Franklin Templeton had threatened to exit India if it was not given a fair hearing.

In a letter to investors Franklin Templeton Asset Management (India) Pvt Ltd President Sanjay Sapre said, “we have no plans to exit our India business. Any speculation suggesting otherwise, or any rumours around sale of business in India are incorrect and simply that-rumours”.

He reiterated that Franklin Templeton’s commitment to India remains steadfast.

Sapre said that Franklin Templeton was an early entrant in the Indian mutual fund industry and remained a part of the industry even while many other global asset managers decided to leave.

He, however, did not deny reports of engaging with government authorities.

“Our engagement with government authorities, in India and globally, is also something we, and many companies do, as a matter of course. We have endeavored to keep all stakeholders, including the relevant government and diplomatic authorities, appropriately informed of developments, and will continue to do so,” Sapre said.

According to him, the intention in reaching out remains bringing the current matters to an appropriate and satisfactory conclusion.

The fund house said it has full confidence in Securities and Exchange Board of India (Sebi) and all regulatory and statutory authorities.

Franklin Templeton MF said the fund house has been fully transparent with the regulator and extended fullest cooperation to them, to help them examine the circumstances surrounding the winding up of the six schemes by Franklin Templeton last year.

The fund house had closed six of its debt funds in April 2020, citing redemption pressures and lack of liquidity in the bond markets.

These schemes, together having an estimated amount of over Rs 25,000 crore assets under management, were Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.

Sapre said the fund house’s primary focus over the last several months has been, and remains, on returning money to unit holders as quickly as possible.

In this regard, the fund house said it has directed its efforts to support SBI Funds Management, the liquidator appointed by the Supreme court, in monetizing the portfolios of these schemes and returning monies to investors at the earliest.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor