The Enforcement Directorate (ED) has conducted a search operation at the homes of people associated with Franklin Templeton Asset Management (India) Private Limited. The probe agency is conducting searches at the homes of former head of Asia-Pacific (APAC) distribution Vivek Kudva and his wife Roopa Kudva.
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The Enforcement Directorate (ED) has conducted a search operation at the homes of people associated with Franklin Templeton Asset Management (India) Private Limited. The probe agency is conducting searches at the homes of former head of Asia-Pacific (APAC) distribution Vivek Kudva and his wife Roopa Kudva. Roopa is the Head of Omidyar Network, India. The agency is also conducting searches at the residences of Santosh Kamat, Chief Investing Officer – Fixed Income at Franklin Templeton Mutual Fund.
What is the whole matter?
Raid is being done in respect of these officers, who suddenly withdrew their personal money from six debt schemes of Franklin Templeton India in April 2020. Capital market regulator Securities and Exchange Board of India (SEBI) had given its verdict on fund house and officials for negligence in fund management, due to which these schemes were suddenly closed and due to this investors’ money was locked. At the same time, it is being told that ED is in relation to withdrawing its personal money from these schemes before announcing the closure of these red schemes.
Kudva retired on 28 July 2022 after working for 16 years in the company. It is being said that the agency is collecting evidence against the company and its promoters as part of the investigation under the Money Laundering Act (PMLA).
What did the company say?
Franklin Templeton had told the reason for this due to lack of money. However, SEBI believes that there has been a serious lapse on the part of the company in the debt scheme, which is against the rules. Therefore, Franklin Templeton Asset Management was directed to refund the management and advisory fees taken during 2020 with 12% interest, the total value of which was Rs 512 crore.
The schemes that Franklin Templeton closed in April include Ultra Short Bond Fund, India Loan Duration Fund, India Dynamic Accrual Fund, India Credit Risk Fund and India Short Term Income Plan. The decision was taken only to save value for the unitholders.
Source: www.tv9hindi.com”
