Franklin Templeton Mutual Fund may face Sebi heat as audit sees lapses

Regulator-appointed firm probing closure of six schemes

Franklin Templeton Mutual Fund, which, in April, spooked the markets by shutting six debt schemes, could face Securities and Exchange Board of India (Sebi) heat as a forensic auditor has submitted adverse findings against the fund house.
 

According to sources, the audit report, submitted to the market regulator on Friday, has shown certain lapses in the dealings of the wound-up schemes.
 

In May, Sebi had appointed Chokshi & Chokshi, an accounting and audit firm, to examine any regulatory violation, for ensuring that the winding up process was done in a fair and transparent manner.
 

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