No plans to exit India business, Franklin Templeton tells investors

NEW DELHI:  Franklin Templeton Mutual Fund on Friday said it has no plan to exit its India operations. 
In a letter to the investors, the US-based asset manager with $1.5 trillion in assets under management said its commitment to the nation remains steadfast.

“We were early entrants in the Indian mutual fund industry and have remained a part of the industry even while many other global asset managers decided to leave. Please let me assure you, we have no plans to exit our India business. Any speculation suggesting otherwise, or any rumours around sale of our business in India are incorrect and simply that - rumours,” Sanjay Sapre, President, Franklin Templeton Mutual Fund said in the letter. 

The statement follows media reports that the Franklin’s global head Jennifer Johnson had written a note to the Indian ambassador in Washington stating that the asset manager would be forced to cut jobs and pull back its India operations in case the market regulator Sebi levies a large fine or issues disgorgement order in the case pertaining to winding up of its six debt schemes.

The letter, however, did not deny reports of discussions with Indian authorities. “Our engagement with government authorities, in India and globally, is also something we, and many companies do, as a matter of course. We have endeavoured to keep all stakeholders, including the relevant government and diplomatic authorities, appropriately informed of developments, and will continue to do so,” it stated. Its six shut schemes have received total cash flows of `15,776 crore in FY21.