Franklin Templeton Moves To Calm Investors After New Debt Fund Ban

Franklin has faced regulatory probes and court battles since April 2020 when it unexpectedly wound up six credit funds.

Franklin Templeton India told investors on Wednesday that the market regulator's ban on its launching new debt funds would have no impact on existing funds that manage $8 billion in assets. The Securities and Exchange Board of India (SEBI) on Monday barred Franklin from launching any new debt schemes for two years after a probe into its sudden closure of six credit funds last year found "serious lapses and violations." Franklin has said it strongly disagreed with SEBI's order and planned to appeal it. In an e-mail to investors on Wednesday seen by Reuters, the fund house sought to reassure investors about any broader impact its other funds. "I would like to clarify upfront, that the SEBI order has no impact on other schemes managed by Franklin," India President Sanjay Sapre said in the email.