Wound-up schemes: Sebi quizzes Franklin Templeton over investment bets

Followed due process, says fund house

The Securities and Exchange Board of India (Sebi) has asked Franklin Templeton Mutual Fund to explain investment decisions of the six schemes that were wound up in April. The regulator has sought the fund house’s response to the forensic audit report that was submitted last month.

“The audit findings highlight certain anomalies in investment strategies. Based on these observations, Sebi wants to understand the investment strategies of the fund house. Sebi also wants the fund house’s response on the six schemes’ exposure to several stressed firms,” said a regulatory official.

The fund house is learnt to have sent a detailed