InvestorQ : What is the latest case that the Chennai based body has filed against the SEBI order on Templeton Mutual Funds?
Arusha Ray made post

What is the latest case that the Chennai based body has filed against the SEBI order on Templeton Mutual Funds?

Answer
image
3 months ago
Follow

Let me clarify, this is not a case filed. It is the Chennai Financial Markets and Accountability that has actually filed an application in the Supreme Court of India alleging that despite the order of the SC, SEBI had done little to appoint an observer for overseeing the e-voting process pertaining to the 6 funds of Templeton that were shut down.

In its 09 Dec order, the Honourable Supreme Court had asked SEBI to appoint an observer for overseeing the complete e-voting process to be on from 26-Dec to 29-Dec. This was suggested by the SC to ensure that the process was above board. Even the final results of the vote had to be submitted directly to the court with the overseer comments.

The Chennai based body has protested to the SC that the regulator had not taken any apparent steps in this direction and no details of the overseer was available. The final matter is scheduled for hearing in the third week of January 2021. The consent of the unit holders is a must for Templeton to wind up these 6 schemes as per the court order.

Franklin Templeton had actually closed six debt mutual fund schemes on April 23, 2020 citing redemption pressure and lack of liquidity in the bond market. Actually, it was a case of bad investments. The present state of cash liquidity in the six schemes clearly indicates that the unit holders will have to take a steep haircut on these funds.

1 Views