sebi:WTM/GM/IMD/06/2021-22

SEBI · SEBI · 2020-04-23 · G. Mahalingam, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Charge of fraud under Regulation 3(a) and 4(2)(q) of PFUTP Regulations not sustained; charge of unfair trade practice under Regulation 4(1) sustained against Noticee No. 1 (on own behalf and on behalf of Noticee No. 3) and Noticee No. 2; disgorgement directed (75%/73% of redemptions into escrow), monetary penalty imposed under Section 15HA, debarment from securities market, and proceedings against Noticee No. 3 abated due to her demise.

Provisions invoked

Regulations

Parties

Holding

The redemption of units in the Impugned Debt Schemes by the Noticees while Noticee No. 1 was in possession of material non-public information constituted an 'unfair trade practice' under Regulation 4(1) of the PFUTP Regulations, 2003, but did not amount to 'fraud' under Regulation 2(1)(c) read with Regulation 3(a) or a violation of Regulation 4(2)(q). Disgorgement, monetary penalty under Section 15HA, and debarment were ordered against Noticee No. 1 and Noticee No. 2.

Full text

__________________________________________________________________________________________ Order in the matter of Franklin Templeton Mutual Fund Page 1 of 44

__________________________________________________________________________________________ Order in the matter of Franklin Templeton Mutual Fund Page 2 of 44

__________________________________________________________________________________________ Order in the matter of Franklin Templeton Mutual Fund Page 3 of 44

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Source: SecMarx — sebi:WTM/GM/IMD/06/2021-22. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.