iNDICA NEWS BUREAU-
The US-based asset management firm Franklin Templeton has confirmed to remain committed to India after rumors of it exiting the country had caused fear among many investors.
On Friday, March 2, Sanjay Sapre, the president of Franklin Templeton, issued an official letter saying the fund house has no plans to exit its India operations.
Media reports recently suggested that Franklin Templeton had sought discussions with the Indian Ambassador to the US over the Securities and Exchange Board of India (Sebi) investigation into the six wound-up debt schemes of the asset management company.
According to the reports, Franklin Templeton had threatened to exit India if it was not given a fair hearing.
Sapre said that Franklin Templeton was an early entrant in the Indian mutual fund industry and 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 rumors around sale of our business in India are incorrect and simply that – rumors,” the letter said.
However, he did not deny reports of engaging with government 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 endeavored to keep all stakeholders, including the relevant government and diplomatic authorities, appropriately informed of developments, and will continue to do so,” he added.
The letter added that fund house had the greatest respect and full confidence in Sebi. The NAVs of all six schemes have exceeded their closing value on 23 April 2020 and all are now cash positive, it said.
The six debt schemes of Franklin Templeton Mutual Fund were frozen on 23 April, 2020 after they faced unprecedented redemptions. The schemes were known to invest in relatively risky debt to get high returns.