InvestorQ : Why has Templeton Mutual Fund now approached the Supreme Court against the High Court order?
Arti Chavan made post

Why has Templeton Mutual Fund now approached the Supreme Court against the High Court order?

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Rutuja Nigam answered.
4 months ago
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A full six months after Franklin Templeton summarily opted to freeze outflows from the six debt funds, there is still no resolution in sight. There have been a slew of legal cases and counter legal cases but as far as the unit holders are concerned there is little by way of progress they have seen with respect to Rs.26,000 crore stuck up.

The latest addition to the fiasco is that Templeton Mutual Fund has approached the Supreme Court after the High Court rightly ruled that the 6 fund schemes could not be wound up without the consent of the unit holders.

Clearly, the investors in 6 of Templeton’s debt funds have been in the lurch over the last 6 months ever since the fund decided to summarily freeze the redemptions in 6 funds due to poor quality of holdings and weak liquidity. The fund has been insisting on a unit holder poll to liquidate the holdings but High Court questions the very winding up of the funds.

Out of the Rs.26,000 crore that is currently locked up as a result of the Templeton’s sudden decision to wind up 6 of its funds, less than one-third of the money has been received. It needs to be seen how much actually remains after loans are repaid. It surely looks like there will be a huge haircut. For Templeton it is more about how much time it can buy.

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