A leading investor association has raised questions about the legality of the voting process for the winding up of six funds that Franklin Templeton Asset Management (India) manages. There was no postal intimation to unitholders who didn’t have a registered email address, according to a letter that Midas Touch Investors Association sent to the Securities and Exchange Board of India (Sebi). It added also argued that unitholders should have a vote in proportion to their holdings. “The principle of one vote per shareholder violates the right of the unitholder, and hence is Illegal,” said the letter from founder Virendra Jain to the regulator.
Franklin Templeton shut schemes receive Rs 13,120 crore till Dec 31
During the last fortnight from December 16-31, 2020, the six wound up schemes received cash inflows worth Rs 1,213 crore. This saw FISTIP become cash positive during the period
BusinessToday.In | January 3, 2021 | Updated 00:59 IST
The six shut schemes of Franklin Templeton have received Rs 13,120 crore in the by the end of last year, since their closure in April. Out of the six plans, five have turned cash positive. As on the last day of 2020, they have Rs 8,527 crore available to disburse among unitholders.
Franklin Templeton Asset Management (India) had wrapped up its six plans on April 24, 2020 - Franklin India Ultra Short Bond Fund (FIUBF), Franklin India Low Duration Fund (FILDF), Franklin India Short Term Income Plan (FISTIP), Franklin India Income Opportunities Fund (FIIOF), Franklin India Credit Risk Fund (FICRF), and Franklin India Dynamic Accrual Fund (FIDA) - locking in Rs 30,800 crore off investor
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The e-voting of unit-holders of six debt schemes of Franklin Templeton Mutual Fund (FTMF), which started on 26th December and would conclude on 29 December 2020, appears to be turned into a farce by FTMF, especially when the market regulator has been playing the role of a mute spectator. The Securities and Exchange Board of India (SEBI) has appointed TS Krishnamurthy, former chief election commissioner (CEC) as observer for the e-voting process and issued a statement on 26th December when the e-voting process had commenced. This move came a day after the Chennai Financial Markets and Accountability (CFMA) moved an urgent application before the Supreme Court (SC) against SEBI for not appointing an observer for the e-voting.
CFMA to Move SC to Scrap Franklin Templeton E-Voting on 6 Shut Funds
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Chennai Financial Markets and Accountability (CFMA), an investor protection body, said it would move an urgent interim application in the Supreme Court on Monday, seeking to nullify the entire e-voting process initiated by Franklin Templeton Mutual Fund (FTMF) on its six shut debt funds.
The investor body alleged that the announcement by the Securities and Exchange Board of India (SEBI) of appointing former Chief Election Commissioner T.S. Krishnamurthy as an observer was an eyewash as it came after the e-voting began on Saturday. It is against the letter and spirit of the order passed by the Supreme Court on December 9. It is akin to appointing a presiding officer after the election, it added.