Franklin Templeton MF on Monday informed the Supreme Court that it will not launch any new debt scheme till Securities Appellate Tribunal (SAT) delivers final verdict in its appeal against SEBI order restricting it from launching new debt schemes for two years.
In an interim order on June 28, SAT stayed the SEBI order and allowed FT MF to launch debt schemes. On Monday, the Supreme Court was hearing a plea filed by SEBI against this SAT order.
During the hearing, the Supreme Court allowed FT MF to deposit Rs 250 crore into an escrow account instead of Rs 512 crore as earlier directed by SEBI, saying that SAT's decision to reduce the amount was 'fair'.
SAT will deliver its final verdict on August 30, 2021.
The case relates to Franklin Templeton MF's decision to close six debt schemes in April 23, 2020. The fund house took the decision citing redemption pressure and lack of liquidity in the bond market.
