The securities market regulator Sebi has moved the Supreme Court to contest the stay put on its order toward Franklin Templeton Mutual Fund’s (FTMF) debt schemes.
The Securities Asset Tribunal (SAT) had stayed Sebi's direction to restrain Franklin Templeton from launching any new debt schemes for a period of two years during the pendency of the appeal of the asset manager. The regulator had also ordered the fund house to return the fund management fees on the wound-up debt schemes, along with 12% interest, amounting to Rs 512 crore.
SAT asked Franklin Templeton to deposit Rs 250 crore in an escrow account instead of Rs 512 crore as directed by Sebi.
In its order, SAT noted that 21 debt schemes are still being managed by Franklin Templeton and no complaint of these schemes have come to the fore.
"The mere fact that the appellant (Franklin Templeton) has chosen to wind up six schemes does not mean that they should be debarred from launching any new debt schemes," it said.
The tribunal had directed Sebi to file a reply and had listed the plea of the company for admission and for final disposal on August 30, 2021.