Comments
Embattled Franklin Templeton has moved the Gujarat High Court to vacate its stay on the process to wind up six debt schemes imposed last Wednesday.
The hearing in the case is scheduled for Monday.
The mutual fund has already started the e-voting process to seek investors approval for closing down six debt schemes which had faced heavy redemption.
However, a group of betrayed investors had moved the Gujarat High Court and sought a stay on the process.
Related Stories
What the Gujarat High Court order means to Franklin Templeton’s investors
If the Gujarat High Court’s stay order is vacated, e-voting may happen on specified datesAs an ad-interim relief last Wednesday, the Gujarat High Court had said Sebi has ordered a forensic audit on Franklin Templeton Asset Management Company account and submit a report thereof.
Considering the facts of the case, the Court said the operation and implementation of the Notice regarding e-voting and unitholder's meeting sent through e-mail shall remain stayed.
The next hearing in the case was posted for June 12.
Related Stories
E-voting on closure of six Franklin Templeton debt schemes to start on June 9
Meanwhile, Franklin Templeton had moved the Court to vacate the ad-interim relief so that it can restart the winding process and liquidate the asset of the schemes to repay investors at the earliest.
Franklin Templeton Trustee Services last month appointed Kotak Mahindra Bank as an independent advisor to monetise the assets held by the six debt schemes -- Franklin India Low Duration Fund, Dynamic Accrual, Credit Risk, Short Term Income, Ultra Short Bond and Income Opportunities Fund -- that are being wound up.
The fund house had earlier clarified that the decision to close the six debt funds would not be reversed even if investors vote 'against' the proposal.
In a letter to investors, Sanjay Sapre, President, Franklin Templeton Asset Management (India) said some investors believe that by voting in the “negative”, the winding up will be reversed and that the six schemes will recommence the redemption and subscription process.
"This is not true. The purpose of the vote is to authorise the trustees to take the next steps for disposal of the assets of the scheme and distribution of the proceeds to the unitholders in accordance with regulations," he said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.