Sebi glare on Voda Idea writedown by mutual funds after AGR verdict

Franklin Templeton MF announced 100% mark-down; others followed valuation metric after SC rejected telcos' petition

The Securities and Exchange Board of India (Sebi) is probing the writedowns carried out by mutual funds (MFs) on their exposure to Vodafone Idea following the Supreme Court’s rejection of the view petition in the adjusted gross revenue (AGR) matter. 

Immediately after the SC verdict, Franklin Templeton Mutual Fund had announced a 100 per cent writedown, resulting in a 4-7 per cent erosion in value for its six schemes exposed to Vodafone Idea debt. The action differed from its peers UTI MF, Nippon MF, and Birla MF, which went for writedowns in accordance with the valuation metrics provided by rating agencies.