On Monday, the stock market watchdog SEBI has disallowed Franklin Templeton AMC to launch any debt scheme for 2 years and also levied a fine to the tune of Rs. 5 crore for not complying to regulatory norms in respect of winding up of 6 debt schemes last year.
Also, the watchdog in its 100-page order has asked the AMC to refund advisory and investment management fee of Rs. 512 crore that includes interest.
In a different order, the SEBI has debarred both Vivek Kudva, former head of Asia Pacific (APAC) for Franklin Templeton and his wide Roopa from the capital market for redeeming Franklin Templeton schemes, while holding non-public information, for a one year period. A penalty to the tune of Rs. 7 crore is imposed on the couple. As per SEBI, the couple had in total redeemed units worth Rs. 30.7 crore while possessing significant non-public information.
Additionaly, Sebi has begun adjudication proceedings against some of the employees of Franklin Templeton AMC such as the company's CEO, compliance officer and directors.