InvestorQ : Why does the Supreme Court want SEBI to appoint an observer for the Templeton e-voting process for winding up of schemes?
shrinidhi Rajan made post

Why does the Supreme Court want SEBI to appoint an observer for the Templeton e-voting process for winding up of schemes?

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3 months ago
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With the Templeton case dragging on interminably for over 6 months now, the Supreme Court has decided to take matters into its hands. The Supreme Court has now asked SEBI to appoint an observer for overseeing the e-voting process at Templeton Mutual Fund.

This e-voting, as you would recollect, is for the purpose of winding up of its 6 schemes that were suddenly shut down without giving any advance notice to the unit holders back in late April 2020. The dispute has been raging in the various courts ever since.

In addition, the Supreme Court has also stipulated that the results of the e-voting should not be announced or made public. Instead, the Supreme Court has insisted that the results will have to be produced before the court in a sealed cover along with the report of observers.

However, for the time period, the stay on payment of any redemption proceeds to unit holders will continue, as per the court. Templeton MF had summarily shut down 6 debt funds in late Apr-20 due to illiquidity and redemption pressures. While a huge haircut looks inevitable, Templeton has been dodging making a clean breast of the matter.

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