SC: Consent by majority sufficient to wind up Franklin Templeton s 6 schemes
By IANS |
Published on
Fri, Feb 12 2021 19:51 IST |
0 Views
Supreme Court of India. (File Photo: IANS) Image Source: IANS News
New Delhi, Feb 12 : The Supreme Court on Friday rejected the objections to poll results and held that the unitholders of the six mutual funds schemes of Franklin Templeton have given their consent by majority to wind up the schemes which the mutual fund house had closed in April last year.
In a 54-page judgment, a bench comprising Justices S. Abdul Nazeer and Sanjiv Khanna said the underlying thrust behind 18(15)(c) of the SEBI (mutual funds) Regulation is to inform the unitholders of the reason and cause for the winding up of the scheme and to give them an opportunity to accept and give their consent or reject the proposal.
In relief to unit holders of the shut schemes of Franklin Templeton India, SBI Funds Management Pvt Ltd will distribute the available cash of Rs 9,122 crore in the funds, as of January 15, among them in the coming week.The Franklin India Ultra .
In relief to unit holders of the shut schemes of Franklin Templeton India, SEBI Funds Management Pvt Ltd will distribute the available cash of Rs 9,122 crore in the funds, as of January 15, among them in the coming week.The Franklin India Ultra .
Synopsis
The Supreme Court of India has approved the distribution frame work submitted by SBI Mutual Fund to distribute Rs 9,122 crore to the unitholders in Franklin case.
Agencies
The Supreme Court of India has approved the distribution frame work submitted by SBI Mutual Fund to distribute Rs 9,122 crore to the unitholders in Franklin case. SBI Mutual Fund had submitted their distribution mechanism after consultation with Securities and Exchange Board of India (Sebi) and Franklin Templeton Mutual Fund. The matter has now been posted for hearing on 17 February 2021 to consider other aspects of the appeal. “As requested by us, the hon’ble Supreme Court, in their order passed on 2 February 2021, directed the distribution of INR 9,122 crore (distributable surplus as of 15 January 2021) to respective unitholders in proportion to their holdings in the schemes under winding up and appointed SBI Mutual Fund to undertake the distribution exercise,” said Franklin Templeton Mutual
Maulik Madhu
BL Research Bureau |
Updated on
February 05, 2021
×
The AMC should distribute ₹9,122 crore to affected investors. But investors in Franklin India Income Opportunities Fund will not receive any part of this amount.
Following the sudden closure of six debt mutual fund schemes by Franklin Templeton Mutual Fund on April 23, 2020, all redemptions from the scheme were halted. Investors were left wondering when their money invested in these schemes would be returned.
On February 2, the Supreme Court directed Franklin Templeton MF to distribute ₹9,122 crore to the unitholders of the wound up schemes within 20 days. With this, the affected investors are for the first time, set to receive a part of their money blocked in these schemes since April 2020. SBI MF will handle the disbursement.