SEBI orders probe into closure of six debt schemes by Franklin Templeton

SEBI has ordered an inquiry into the Franklin Templeton case. A chartered accountant and forensic audit firm have now been barred by the Securities and Exchange Board of India (SEBI) from investigating the closure of six debt mutual fund schemes by Franklin Templeton Mutual Fund.

It is learned that an audit notice has been received from SEBI to continue providing necessary information to Franklin Templeton in this matter. Mumbai-based Choksi & Choksi LLP, which provides advice on tax, accounting risk and due diligence, has been entrusted with the task, sources said. It is likely to be investigated by this firm whether the collusion between the fund house and the bond issuing companies was in the interest of the directors or senior executives and whether the transaction-transactions were done in the interest of the investors.

SEBI has asked Choksi and Choksi to submit the report within 30 days. Experts say that all aspects of the case will be examined, including violationof regulations. Further, it is possible to investigate whether the fund houses have followed the rules. It may be mentioned that franklin templeton has given six debt schemes to franklin india ultra short bond fund, franklin india short term income fund, franklin india credit risk fund, franklin india low duration fund, franklin india dynamic aceral fund and franklin india income opportunity fund after 23april 2020.