SC upholds validity of e-voting for winding up Franklin Templeton's 6 MFs
Published On: Friday, February 12, 2021 | By: Team KnowMyStock
The Supreme Court today(12th Feb.2021) upheld the validity of the e-voting process for winding up of six mutual fund schemes of Franklin Templeton and said disbursal of funds to unitholders will continue. A bench of justices S A Nazeer and Sanjiv Khanna, while rejecting the opposition by some unitholders to the e-voting process, said disbursal of funds has to be done as per the earlier order of the apex court. The top court had on February 2 ordered that Rs 9,122 crore be disbursed within three weeks to the unitholders of Franklin Templeton's six mutual fund schemes which are proposed to be wound up. It had said that disbursal of money would be done in proportion to unitholders' interest in the assets. Earlier, the apex court had asked the Securities and Exchange Board of India (SEBI) to appoint an observer for overseeing the e-voting process.
The e-voting with regard to the winding up Franklin Templeton's six mutual fund schemes had taken place in the last week of December and it has been approved by a majority of unit holders.
The apex court had on February 2 entrusted the State Bank of India (SBI) Mutual Fund to disburse the money as all the lawyers gave consent to the court's order.
It had granted liberty to the litigating parties to approach the court in case of any difficulty in the disbursal of money to unit holders.
The top court on January 25 had said it would first deal with the issues related to objection to the e-voting process for winding up of the six mutual fund schemes and distribution of money to the unit holders.Prior to this, it had granted three days for filing of objections to the e-voting.
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