Shivangi Prakash-
On Monday, the Supreme Court ruled that Franklin Templeton Asset Management India Pvt Ltd will not launch any new debt schemes until the Securities Appellate Tribunal (SAT) in Mumbai hears its appeal.
The Bench chaired by Justice Abdul Nazeer heard an appeal filed by the Securities and Exchange Board of India (SEBI) contesting the SAT’s ruling prohibiting Franklin Templeton from establishing any new debt scheme for a period of two years.
The statement of Senior Advocates Harish Salve and Dr. AM Singhvi, who appeared on behalf of Franklin Templeton, was recorded by the Bench.
The Bench noted, “We’ve heard counsels appearing for the parties. Mr Harish Salve and Dr Singhvi, Senior Counsels, submit that Franklin Templeton Asset Management India Pvt Ltd will not launch any new debt scheme till disposal of appeal pending before SAT Mumbai. The Submission of Ld Senior Counsels has been placed on record.”
The Bench, on the other hand, declined to intervene in the part of the contested Order that ordered Franklin Templeton to pay 250 crores against a demand of 512 crores as instructed by the SEBI.
The Bench further added, “4 weeks further time is granted to petitioner to file their reply before the Tribunal. We request the Tribunal to dispose of the main matter as expeditiously as possible.“
During the hearing, Solicitor General Tushar Mehta appearing for the SEBI stated that the figure of 512 crores was determined according to the statutory norms.
The value of 512 crores is not a fictitious figure, it was calculated using a process.
The Bench questioned Mr. Salve on how the 512 crores were reduced to 250 crores by the SAT’s interim ruling.
Mr. Salve said, “Its half. Its deposit 50%. It’s an interim order. It’s going to be heard. Heavens are not going to fall. We are not running anywhere”
After Senior Counsels AM Singhvi and Harish Salve agreed that their statements can be recorded that no new scheme will be launched until disposal of the appeal, the Bench told Mr. Mehta, “What we are proposing is 50% deposit is alright as an interim measure and quite fair, and we’ll record their submission that they won’t launch any scheme”
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