Not Leaving India, Will Rebuild The Brand Here, Franklin Templeton Says

Franklin Templeton is not planning to leave India. Instead, it is rebuilding its brand here, president of its domestic operations has said.

“I can say categorically that we are not leaving India. It would be silly to leave India,” Avinash Satwalekar, president at Franklin Templeton India, told reporters in Mumbai on Tuesday.

Satwalekar acknowledged the speculation about the company following the footsteps of its foreign peers in exiting India especially after SEBI's action against debt mutual funds, but made it clear that it has no such plans. He said the company -- which has been in India for 26 years -- has more than Rs 56,000 crore in assets under management from 20 lakh investors, and that its operations are incredibly profitable.

The Securities and Exchange Board of India had November 2022 issued a show-cause notice to Franklin Templeton India, following its April 2020 decision to wind up six debt schemes with Rs 25,000 crore in AUMs from three lakh investors, citing liquidity challenges because of the pandemic.

The company was asked to pay Rs 5 crore as penalty, return over Rs 450 crore collected as investment management and advisory fees. It was barred from launching new debt schemes.

Franklin Templeton India has challenged the SEBI order in the Securities Appellate Tribunal, which is yet to adjudicate on the matter.

Satwalekar, who took charge as head of Franklin Templeton's India three months ago, said the company will rebuild its brand that has taken a "beating" over the last two years. The asset manager will be re-engaging with distributors, employees, and investors, he said, adding that it will also be investing in people and expanding into new growth pockets.

To this end, Franklin Templeton India has launched a balanced advantage fund--its first in a decade. It will also be investing in fixed income schemes. Satwalekar said the company will be regularly launching products over the next 6-12 months.