The Securities Appellate Tribunal (SAT) on Thursday stayed a SEBI order banning former head of Franklin Templeton Asia Pacific (APAC) Vivek Kudva from accessing securities market for one year, news agency Reuters reported.
Along with the ban, SEBI imposed a fine of Rs 7 core on Kudva and his wife for reportedly redeeming their units in debt schemes before winding up of schemes by Franklin Templeton MF.
Kudva challenged the order in SAT saying that the market regulator had 'overstepped' its powers. In the appeal, Kudva argued that mutual fund redemption is akin to withdrawing one's own money from a bank and hence, cannot be seen as 'unlawful trade practices', according to the report.
In the order, SAT has asked Kudva to deposit half of the Rs 4 crore penalty imposed on him in an escrow account.
This is the second breather for Franklin Templeton MF within a week. On Monday, SAT has stayed a SEBI order barring the fund house from launching new debt schemes for two years.
