Franklin Templeton says it has no plans to exit India
facebooktwitter
Loading...

Franklin Templeton says it has no plans to exit India

In a letter issued on Friday, Franklin Templeton President Sanjay Sapre said the fund house had the greatest regard for and absolute trust in SEBI

  • April 2, 2021  
  • |  
  • UPDATED   11:07 IST
Franklin Templeton says it has no plans to exit India
Franklin Templeton had shut six debt mutual fund schemes on April 23 last year, citing redemption pressures and lack of liquidity in the bond market

Franklin Templeton's President Sanjay Sapre has said that the fund house has no plans to exit its India business.

Some media reports had earlier indicated that Franklin Templeton had requested discussions with the Indian Ambassador to the US over the SEBI (Securities and Exchange Board of India) probe into six of its shut debt schemes.

As per the reports, the fund house had threatened to exit India operations if it was not given a fair hearing.

Also Read: SC approves SBI MF's plan for wound-up Franklin Templeton debt schemes

Mentioning this in his letter, as reported by Mint, Sapre said, "We were early entrants in the Indian mutual fund industry and have remained a part of the industry even while many other global asset managers decided to leave. Please let me assure you, we have no plans to exit our India business. Any speculation suggesting otherwise, or any rumours around sale of our business in India are incorrect and simply that - rumours."

The letter, though, did not repudiate reports of talks with Indian 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 endeavoured to keep all stakeholders, including the relevant government and diplomatic authorities, appropriately informed of developments, and will continue to do so," it stated.

Also Read: After ED case, SEBI serves notices to Franklin Templeton 

The letter further added that Franklin Templeton had the greatest regard for and absolute trust in SEBI.

The NAVs (Net Asset Value) of all six schemes of the fund house surpassed their closing value on April 23, 2020, and all are now cash positive, it noted.

Franklin Templeton had shut six debt mutual fund schemes on April 23 last year, citing redemption pressures and lack of liquidity in the bond market.

The schemes -- 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 -- together had an estimated Rs 25,000 crore as AUM.

Also Read: ED to investigate Franklin Templeton, senior officials for money laundering