Sebi slaps Rs 5 cr fine on Franklin Templeton AMC, bans Vivek Kudva from markets for 1 yr

Sebi on Monday barred Franklin Templeton AMC from launching any new debt scheme for two years and imposed a penalty of Rs 5 crore for violating regulatory norms in the case of winding up of six debt schemes in 2020.

Also, it has been asked to refund investment management and advisory fees to the tune of Rs 512 crore, including interest, collected with respect to the six debt schemes, Sebi said in its 100-page order.

In a separate order, the regulator has barred Vivek Kudva, former head of Asia Pacific (APAC) for Franklin Templeton, and his wife Roopa from the securities market for one year for redeeming units of Franklin Templeton MF schemes while in possession of non-public information.

The regulator has also imposed a total penalty of Rs 7 crore on the couple.

Besides, they have been asked to jointly and severally transfer Rs 22.64 crore redeemed of Franklin Templeton MF schemes to an escrow account within 45 days.

Sebi found that the couple had cumulatively redeemed units amounting to Rs 30.70 crore while in possession of material non-public information.

In addition, Sebi has initiated adjudication proceedings against certain employees of Franklin Templeton AMC, including the chief executive officer, chief compliance officer and the directors.