SEBI debars Omidyar Network India head for unfair trade practices

Full disclosure: Omidyar Network India owns a 17.11 percent stake in Newslaundry.

The Securities and Exchange Board of India has debarred Vivek Kudva and his spouse Roopa Kudva from the capital markets for a year, VCCircle reported. This is in addition to a monetary penalty for unfair trade practices. Vivek heads the Asia Pacific unit of Franklin Templeton, while Roopa is partner and managing director at Omidyar Network India, which has invested in digital startups in India. In the media space, it has equity investments in Scroll, The Ken and Newslaundry, and has given grants to Swarajya.

SEBI noted that the Kudva couple, along with Vivek Kudva's mother, redeemed personal investments from six debt schemes of Franklin Templeton Mutual Fund based on confidential information.

According to the VCCircle report, the Franklin Templeton Mutual Fund decided to shut the debt schemes on April 23, 2020 and the Kudvas redeemed their investments just before the decision was taken.

SEBI said Vivek and Roopa Kudva would be restrained from accessing the securities market for a year and disallowed from liquidating their existing holding of securities, including mutual funds. Vivek has been slapped with a penalty of Rs 4 crore and Roopa Rs 3 crore.

Correction: Roopa and Vivek Kudva have been penalised for unfair trade practices and not fraudulent practices as this report wrongly stated. We regret the error.