sebi

The many facets of front-running and insider trading 

SEBI (Securities Exchange Board of India) has levelled charges of front-running against two big institutions that may Indians are invested with – LIC and Axis Mutual Fund. Front running and its close cousin – insider trading – were quite widely prevalent in the days of yore, before SEBI drafted elaborate regulations to keep such practices at bay. But what do today’s investors need to know about these malpractices? Here’s an explainer.

The many facets of front-running and insider trading  Read More »

Franklin judgement – What’s said and what’s left unsaid

SEBI has come out with its order regarding l’affaire Franklin Templeton debt funds. The 100-page document is categorical in its indictment of the AMC and the ways in which these debt funds were managed. 2 messages are clear from the order: One, investor protection is paramount to the regulator. Two, fund managers and AMCs cannot take their fund management responsibility lightly.

Franklin judgement – What’s said and what’s left unsaid Read More »

Franklin Investors – Neither the regulator nor regulated entity to your rescue. It’s the Court!

Now, with Franklin India AMC facing multiple lawsuits on the manner of winding up its six debt funds – the saga has taken a new turn.
• Lawsuits by unitholders against Franklin bring to light the fact that the rights of unitholders under SEBI regulations are ambiguous. It cannot simply be assumed that unitholders rights are limited to simply voting for liquidating a fund’s assets.
• In communicating with unitholders, Franklin’s line of argument also comes across as somewhat high-handed.

Franklin Investors – Neither the regulator nor regulated entity to your rescue. It’s the Court! Read More »

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