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
SC orders disbursal of Rs 9K cr to unitholders of Franklin Templeton s 6 MF schemes PTI
Updated Feb 3, 2021, 8:54 am IST
The bench granted liberty to the litigating parties to approach the court in case of any difficulty in the disbursal of money
Franklin Templeton Investments Logo (Wikipedia)
New Delhi: The Supreme Court Tuesday 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.
A bench of Justices S A Nazeer and Sanjiv Khanna said that the disbursal of money would be done in proportion to unitholders interest in the assets.
Synopsis
The Supreme Court has directed Franklin Templeton to distribute Rs 9,122 crore to unitholders of the six schemes that were shut by the mutual fund house in April.
The Supreme Court has directed Franklin Templeton to distribute Rs 9,122 crore to unitholders of the six schemes that were shut by the mutual fund house in April. The apex court has directed SBI Mutual Fund to carry out the exercise of disbursement.
Supreme Court bench of Justices Abdul Nazeer and Sanjiv Khanna have directed the fund house to distribute the money to unitholders within twenty days from today. We are pleased that, as requested by us, and in the best interests of Unitholders, the Hon’ble Supreme Court has directed the distribution of INR 9,122 crore (distributable surplus as of 15 January 2021) to the respective unitholders in proportion to their holdings in the schemes under winding up, subject to fund running expenses. As previously stated, we went ahead with the difficult decision of windin