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Unitholders Gave Consent To Windup Six Schemes Of Franklin Templeton: Top Court Franklin Templeton Mutual Fund had closed six debt mutual fund schemes on April 23 last year citing redemption pressure and lack of liquidity in the bond market.
Updated: February 13, 2021 2:39 pm IST
Till November 27, 2020 the six schemes received total cash flows of Rs 11,576 crore from maturities
The Supreme Court Friday rejected the objections to the result of e-voting process and held that unitholders have given their consent by majority to windup six mutual fund schemes of Franklin Templeton. The Supreme court, which said that winding up and disbursement of funds to unitholders would be in terms of its directions passed in the matter, directed that disbursement can be made in tranches without waiting for liquidation of all the securities or assets. The e-voting with regard to winding up of Franklin Templeton s six mutual fund schemes Franklin India Low Duration Fund, Franklin India Ultra
The Supreme Court on Friday upheld the validity of e-voting process for winding up of six mutual fund schemes of Franklin Templeton, and said disbursal of funds to unit holders will continue.
SC: Consent by majority sufficient to wind up Franklin Templeton s 6 schemes
By IANS |
Published on
Fri, Feb 12 2021 19:51 IST |
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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.
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