Tag: franklin templeton

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. Read more

The Supreme Court today(3rd December 2020) asked Franklin Templeton Mutual Fund to initiate steps within one week for calling a meeting of unitholders to seek their consent for the closure of six mutual fund schemes and said there will be no redemption of units by investors till further orders. The top court also agreed to hear an appeal filed by Franklin Templeton against the Karnataka High Court order which stopped the fund house from winding up its debt fund schemes without the prior consent of the investors. A bench of Justices S Abdul Nazeer and Sanjiv Khanna observed that the issue is big and people wanted a refund. It said that without prejudice to the rights of any party, trustees are allowed to call a meeting of unitholders to seek their consent for approval, and in this regard, steps are taken within a period of one week. Read more

Franklin Templeton Today (8th May 2020) issued an “unconditional apology” to market regulator Sebi over its global chief comments that regulatory tightening contributed to winding up of schemes. The fund house said the remarks made by Jenny Johnson, president, and CEO, Franklin Templeton during their quarterly earnings call were quoted “out of context” by media outlets. During an analysts call on 6th May 2020, Jenny Johnson, president, and CEO, Franklin Templeton had said “Unfortunately, Sebi came out with new guidelines saying that any investments in unlisted instruments in funds can’t have more than 10 percent in a fund, and you can’t trade them. So that orphaned about a third of our fund there.” Read more

Franklin Templeton Mutual Fund has decided to wind up six debt mutual fund schemes. The six schemes are Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund. These schemes manage assets worth Rs 26,000 crore. “Significantly reduced liquidity in the Indian bond markets for most debt securities and unprecedented levels of redemptions following the COVID-19 outbreak and lockdown have compelled us to take this decision,” said Sanjay Sapre, president, Franklin Templeton India. Read more