Franklin Templeton Mutual Fund has said its commitment to India remains “steadfast” and that the fund house has no plans to exit its operations in the country.

This statement comes amid media reports of intervention by its US-based parent seeking the diplomatic route for a “just and fair” hearing by the Securities and Exchange Board of India (Sebi) with regard to its investigation on the winding up of six schemes. The reports had said that Franklin Templeton had threatened to exit India if it was not given a fair hearing.

In a letter to investors, Franklin Templeton Asset Management (India) Pvt Ltd president Sanjay Sapre said, “We have no plans to exit our India business. Any speculation suggesting otherwise, or any rumours around sale of business in India are incorrect and simply that-rumours.”

Sapre added that Franklin Templeton was an early entrant in the Indian mutual fund industry and remained a part of the industry even while many other global asset managers decided to leave. He, however, did not deny reports of engaging with government authorities.

“Our engagement with government authorities, in India and globally, is also something we, and many companies do, as a matter of course. We have endeavoured to keep all stakeholders, including the relevant government and diplomatic authorities, appropriately informed of developments, and will continue to do so,” Sapre said.

He said the fund house would continue to reach out to the regulators to bring the current matters to an appropriate and satisfactory conclusion.

A PTI report quoting Sapre said that the fund house has full confidence in market regulator Sebi and all regulatory and statutory authorities.

According to the fund house, it has been fully transparent with the regulator and extended fullest co-operation to them, to help them examine the circumstances surrounding the winding up of the six schemes.

The fund house had shut six debt mutual fund schemes on April 23 last year, citing redemption pressures and lack of liquidity in the bond market.

The schemes are Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund, and Franklin India Income Opportunities Fund.

Meanwhile, the six shut schemes have received Rs 15,776 crore from maturities, pre-payments and coupon payments since closing down last year.

“The six schemes have received total cash flows of Rs 15,776 crore till March 31, 2021 from maturities, coupons and prepayments since winding up,” the fund house said in a statement.

Over the latest fortnight ended March 31, this year, these schemes received Rs 505 crore.

The fund house added that the net asset value (NAV) of all the six schemes were higher as on March 31 this year, against their respective NAVs on April 23, 2020. It reiterated that the primary focus over the last several months has been, and remains, on returning money to unit holders as quickly as possible.