Page 14 - Banking Finance July 2021

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Central Govt questions The corporate affairs ministry notified was involved in framing of new
the Companies(Indian Accounting regulations for the securities market.
reports on rise in Indians' Standards) Rules, 2021. The changes Prior to his elevation, Mohanty was an
Swiss bank deposit have been made after consultations ED and has also served as a Director
with the National Financial Reporting
The finance ministry said that there did in the erstwhile Forward Markets
not appear to be "any significant Authority (NFRA). Commission.
possibility" of an increase in deposits Under the revised rules, entities are
from undeclared incomes of Indians. required to make additional disclosures Franklin Templeton
related to interest rate benchmark
The ministry was reacting to reports reform. These disclosures are to Mutual Fund returns Rs.
which suggested funds of Indians in enable users of financial statements to
Swiss banks have risen to over Rs understand the effect of interest rate 17,777 cr to investors of
20,700 crore at the end of 2020 from benchmark reform on an entity's six schemes
Rs 6,625 crore at the end of 2019, financial instruments and risk Franklin Templeton Mutual Fund (MF)
reversing a two-year decline. It said management strategy. said it has returned Rs 17,777 crore to
exchange of financial information have unit holders of six shuttered debt
taken place between both countries in Entities would have to disclose the schemes till June 15. This amounts to
2019 and 2020. In view of existing legal nature and extent of risks to which 71 per cent of assets under
arrangement for exchange of they are exposed arising from financial management (AUM) as on April 23,
information of financial accounts, there instruments subject to interest rate 2020, when the fund house shut its six
does not appear to be any significant benchmark reform, and how the debt mutual fund schemes citing
possibility for increase of deposits in entities the manage these risks. redemption pressures and lack of
Swiss banks which is out of undeclared liquidity in the bond market.
incomes of Indian residents. Two SEBI whole-time
It said Swiss authorities have been members get extension Further, cash to the tune of Rs 580
crore was available for distribution as
requested to provide possible reasons The Centre has given two-year on June 15, Franklin Templeton MF said
for increase/decrease. "Media reports extension each to two SEBI whole-time in a statement.
allude to the fact that the figures members - Ananta Barua and Santosh
reported are official figures reported Kumar Mohanty. This is the first time The schemes -- Franklin India Low
by banks to Swiss National Bank and do that two whole-time members are Duration Fund, Franklin India Dynamic
not indicate the quantum of alleged getting an extension at the same time, Accrual Fund, Franklin India Credit Risk
black money... these statistics do not according to those tracking the market Fund, Franklin India Short Term Income
include the money that Indians, NRIs regulator. Plan, Franklin India Ultra Short Bond
or others might have in Swiss banks in While Ananta Barua's tenure now Fund, and Franklin India Income
the names of third-country entities," Opportunities Fund -- together had an
stands extended for till July 31, 2023, estimated Rs 25,000 crore as assets
the statement said.
that of S K Mohanty has been under management (AUM).
extended till June 24,2023.
Rules pertaining to Indian "The schemes have returned Rs
Both Mohanty and Barua were 17,777.59 crore to unit holders
Accounting Standards appointed whole-time members in amounting to 71 per cent of AUM as

amended 2018 (April and July, respectively) for a on April 23, 2020," the fund house
tenure of three years.
The government has amended rules said.
pertaining to various Indian Accounting The Government has in March begun Under the first disbursement in
Standards (Ind AS), including those a futile search for SEBI whole-time February, investors received Rs 9,122
related to interest rate benchmark members as the tenures of Mohanty crore, while Rs 2,962 crore were paid
reform. Ind AS are converged with the and Barua were to end. to investors during the week of April
International Financial Reporting Barua, an Executive Director before 12, Rs 2,489 crore in the week of May
Standards (IFRS). his elevation as whole-time member, 3, and in the latest disbursement

14 | 2021 | JULY | BANKING FINANCE