Vivek Kudva, the head of Franklin Templeton (FT), Asia-Pacific, on Wednesday said he is considering appropriate steps against the market regulator's order in case of winding of six debt schemes 2020, including filing an appeal before the Securities and Appellate Tribunal (SAT).

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"I have the highest regard for SEBI. However, I am reviewing the order and considering appropriate next steps which may include filing an appeal before the Hon’ble Securities Appellate Tribunal (SAT)," he said.

The Securities and Exchange Board of India (SEBI) on Monday barred the fund house from launching any new debt scheme and imposed a penalty of Rs 5 crore for violation of regulations in shutting the six debt schemes last year.

In its order, SEBI mentioned that FT fund house has violated provisions of the Mutual Fund Regulations and also certain SEBI circulars.

The markets regulator has also prohibited Kudva and his wife Rupa Kudva (MD of Omidyar Network India) from accessing the securities market for a year.

"I have always acted in accordance with SEBI regulations, including in this instance. My personal transactions in the two schemes (under winding-up) have been conducted in good faith and with no intent to gain an unfair benefit," he said in a statement.

SEBI has ordered Kudvas to transfer Rs 30 crore of the redeemed FT units to an escrow account within 45 days. Vivek is to pay Rs 4 crore has a monetary penalty and Rupa will pay Rs 3 crore.

Additionally, SEBI has initiated adjudication proceedings against certain employees of FT including the CEO, CCO, and the director.

"As stated in the SEBI order, I had already placed myself in a similar position as investors in April 2020 and the proceeds of the redemptions were voluntarily set aside such that I and my family will ultimately receive no more than the investors remaining in the Schemes. My interests, therefore, remain fully aligned with outcomes that investors in the two schemes under winding up will have,” he said in a statement issued in a personal capacity.

In a statement released earlier on Tuesday, Franklin Templeton spokesperson said the fund house places a great emphasis on compliance and believes it has acted in the best interest of unitholders and in accordance with regulations.

First Published:Jun 8, 2021 11:42 AM IST