Sebi seeks Franklin Templeton reply after investment markdown in Voda Idea

Markets regulator Sebi has sought a reply from Franklin Templeton after the fund house’s markdown of its investment in second-largest telecom firm Vodafone Idea Ltd (VIL) that led to an erosion of investor wealth.

However, Sebi Chairman Ajay Tyagi parried questions on whether such a move is illegal or if it hurts the broader cause of protection of investors’ interests.

Following the Supreme Court ruling on the adjusted gross revenue (AGR) matter, which resulted in a due of Rs 53,000 crore on the telco, the fund house had marked down its investment value to zero, resulting in a correction of up to 7 per cent in net asset value for six of its schemes.