Providing an interim relief to Franklin Templeton Mutual Fund, the Securities Appellate Tribunal (SAT) has stayed the SEBI order in which the market regulator has imposed fine of Rs.5 crore, asked fund house to refund of TER i.e. Rs.512 crore and barred it from launching new debt scheme.
In fact, the tribunal believes that the direction to refund Rs 512 crore to be excessive. "In our view, prima facie, this appears to be incorrect, in as much as, at best, only profits could be directed to be refunded after deducting the necessary expenses actually incurred by the appellant in managing the schemes," the tribunal said.
The tribunal has provided partial relief in this regard. SAT has asked Franklin Templeton MF to deposit Rs.250 crore within two weeks into an interest-bearing escrow account.
SAT has also allowed the fund house to launch new debt schemes till the disposal of the appeal.
“We are of the opinion that since 21 debt schemes are still being managed by the appellant and no complaint of these schemes have come to the fore the mere fact that the appellants have chosen to wind up six schemes does not mean that they should be debarred from launching any new debt schemes,” SAT said.
SAT has asked SEBI to file its reply in four weeks and then a rejoinder by Franklin Templeton in three weeks.
The tribunal will next hear the matter on August 30.
