Franklin Templeton issues apology to Sebi, says CEO's remark quoted 'out of context'

NEW DELHI: Franklin Templeton Mutual Fund on Friday issued an unconditional apology to market regulator Sebi (Securities and Exchange Board of India) for remarks made by its president and CEO Jennifer M Johnson that new regulatory guidelines led to shutting down of its six debt funds last month.
"We deeply regret any unintended slight this may have caused to the esteemed offices of Sebi whom we have always held in the highest regard and unconditionally apologise for the same," Templeton said in a statement.
The fund house also said that Johnson had provided a general background concerning Franklin Templeton's experience in the Indian market as it existed before Covid-19. The reference to the regulations around unlisted securities was intended to be a part of these background statements to provide context to an audience unfamiliar with Indian markets, it added.
The statement comes a day after Sebi came down heavily on Templeton's global chief for her comments and asked the fund house to focus on returning money to investors stuck in the discontinued schemes "as soon as possible".
Drawing reference to the comments, the regulator had pointed out that “in light of credit events since September 2018 (after IL&FS defaulted), that led to challenges in the corporate bond market, a need was felt to review the regulatory framework for mutual funds and take necessary steps to safeguard the interest of investors and maintain the orderliness and robustness of their investments.”
In its statement, Franklin Templeton further highlighted that it is working closely with the trustees and is committed to ensuring an orderly and equitable exit for all investors at the earliest possible time.
On April 24, the fund house had decided to close down six of its debt funds managing nearly Rs 25,900 crore, citing liquidity troubles in the bond market triggered by Covid related issues.