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    Gujarat HC stays Franklin Templeton's e-vote on winding up of six schemes

    Synopsis

    The Gujarat High Court on Wednesday stayed Franklin Templeton Mutual Fund's e-vote and unit holders meet for the six wound up schemes.

    The Gujarat High Court on Wednesday stayed Franklin Templeton Mutual Fund's e-vote and unit holders meet for the six wound up schemes. The petitioners have alleged that the winding up of the debt schemes by Franklin Templeton was illegal. The next date in the matter is June 12.

    In the order, the Gujarat High Court said that, "Considering the facts of the case, issue Notice, returnable on 12.06.2020. In the meantime, by way of ad-interim relief, the operation and implementation of the Notice dated 28.05.2020 regarding E-voting and Unit-holder's Meeting send through Email by respondent no.3 herein shall remain stayed. Direct service is permitted."

    "We are examining the matter and will take appropriate steps as may be required. We continue to follow due process, both in making investment decisions and in the winding up of these schemes. We have acted in the best interest of our investors and in accordance with all regulations," said a Franklin Templeton spokesperson, reacting to the stay.

    The petitioners had earlier argued that the winding up of the six debt mutual fund schemes was contrary to sub-clause 15(c) of Regulation-18 of the SEBI (Mutual Funds) Regulations. However, in this case, no such consent was obtained. They further argued that as per Regulation-39 of the Regulations, a scheme of a mutual fund may be wound up only after repayment of the amount due to the unit-holders, which has also not been followed in this case.

    "It was contended by the learned senior counsel that the petitioners have invested a huge sum of approximately Rs.6,55,00,000/- in the schemes floated by the respondent-Asset Management Company, Franklin Templeton Asset Management (I) Private Ltd., the details of which have been provided in the petition," the order noted.


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    5 Comments on this Story

    Mayur Vora39 days ago
    I am disgusted that Indian courts give priority such cases whereas the common man has to wait years having cases postponed to no end. Some die, some no more money to pay lawyers and families are left without money due to unsettled disputes and the courts give priority to politics and large corporations as they pay big money. To speed things up courts should tell all clients having family disputes to compulsory arbitration, then see cases get resolved fast. Only bring cases to court after arbitration after 1 year fails. Get retired lawyers/judges to use the courts at night or work from their offices/hones and OnLine too. In fact courts to now invest in computers and do online hearings - lawyers will save at least 2hours of travel and get more work done and judges can move things fast with less effort. Onely final hearing to be in front of judges. Also for final judgement, the judges should be give 3 months to clear as they sit on their butts and delay reading. Many judges retiring that year so they push the cases to the new incoming judge- all irresponsible.
    Sudhir Gupta39 days ago
    Good
    Please arrange for unity of all investors
    Make a forum
    Murali40 days ago
    How does it helps getting money to investors.It will delay process.one thing every one should remember until and unless Franklin gets money by selling or maturing papers, Investors will not get money.So be stick with Franklin AMC and get money back.these kind of games will not help to retail investors
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