Vivek Kudva, head of Asia Pacific distribution at FT, was barred last month by the Securities and Exchange Board of India (SEBI), which said he and his family members used non-public information to sell holdings worth about $4 million in Franklin debt funds that were shut down weeks later and caused investor panic.
Investors in the six Franklin Templeton debt schemes that have been shuttered have suffered enough. The Sebi order does not do justice to what they have endured.
Vivek Kudva said his personal transactions in the two schemes (under winding-up) have been conducted in good faith and with no intent to gain unfair benefit,
Vivek Kudva has been directed to pay a monetary penalty of Rs 4 crore, whereas, a fine of Rs 3 crore has been slapped on Roopa Kudva.
The market regulator is wielding an unprecedented level of control over how mutual funds operate, delaying new launches and dictating investment strategy, frustrated insiders in the embattled industry say.
Vivek Kudva of Franklin Templeton Investments hails this as a positive move and believes this will help the asset management companies, distribution companies as well as the investors.
There's a rift in the mutual fund industry. Small and medium-sized mutual fund houses are not happy with some of the recommendations made by the industry to revive growth on grounds that these will benefit large fund houses and kill the smaller ones, reports CNBC-TV18's Mitra Joshi and Payaswini Upadhyay.
The mutual fund industry has been under the weather for quite some time. The SEBI chairman is looking to give some incentives for the industry. Vivek Kudva, managing director-India & CEEMEA, Franklin Templeton Investments says, the industry has asked for two-three things.
It was a rough year, 2010, for mutual funds. Fund houses are still struggling to adapt to the no-entry load ban. So how will 2011 shape up. Ashu Suyash of Fidelity International expects mutual funds to do really well this year. Investors likely to come back to equities this year, he said.