Franklin Templeton Trustees and top employees of the fund house have decided the move the Securities Appellate Tribunal against the SEBI order imposing a penalty of ₹15 crore against them for breaching norms.
Reacting to the SEBI order, a Franklin Templeton Trustee Services spokesperson said it disagrees with the SEBI order findings and intends to file an appeal with Securities Appellate Tribunal.
"We place great emphasis on compliance and believe we have always acted in the best interest of unitholders and in accordance with regulations," he said.
The difficult decision to wind up the six debt schemes was taken after due consideration of available options to avoid distressed sales of portfolio holdings to meet heightened redemptions and with the sole objective of preserving value for unitholders, said the spoke person.
The fact that the current net asset value of each of the six schemes is higher than what it was on April 23, 2020 supports the winding-up decision, he added.
The six schemes under winding up have already distributed ₹17,778 crore to unitholders, comprising 71 per cent of the AUM of ₹25,214 crore on the date of the winding-up decision. Of the above, ₹3,205 crore was paid out just last week. The process of monetisation and distribution is ongoing, he said.
Meanwhile, a spokesperson representing top employees of the fund house said there are policies in place to cover various matters consistent with applicable regulations and global best practices.
"We believe the company and employees have acted in compliance with regulations and in best interest of unitholders in discharging their responsibilities," he added.
"Based on our initial review of the order, we are considering all options with regard to next steps, including filing an appeal before Securities Appellate Tribunal," he said.