The Supreme Court Monday said it would first deal with issues related to objection to the e-voting process for winding up Franklin Templeton s six mutual fund schemes and distribution of money to unitholders. A Bench comprising Justices S A Nazeer and Sanjiv Khanna posted the matter for hearing on February 1 after one of the lawyers, appearing in the case, referred to a recent media report and sought time to file an application placing on record certain new facts. The Bench permitted the lawyer to file application within three days and said that response to the plea be filed within three days thereafter.
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While Franklin Templeton Mutual Fund (FTMF) has been rejoicing with unit-holders voting in favour of winding-up of the six debt schemes, the observer appointed to oversee the e-voting process has expressed several concerns about the entire process. The observer, Taruvai Subayya (TS) Krishnamurthy, former chief election commissioner, points to the grey areas he spotted during the e-voting process, pertaining to voting rights, voting period, and voting rules. The report also mentions that 115,000 of the total unitholders, or about 38%, have participated on an overall basis in the e-voting. .there were many grey areas in the procedure adopted, which raised doubts and apprehensions in the minds of investors. Even FTMF did not seem to have had a clear idea about the procedure to be followed. This seems to be mainly because an exercise of this type was done for the first time and there were no clear-cut guidelines in certain areas to be followed, the report says.
Franklin Templeton Mutual Fund (FTMF) has claimed that till 15 January this year, its six debt schemes under winding since April 2020, have received Rs13,789 crore from maturities and pre-payments. Meanwhile, without sharing any calculations, the Chennai Financial Markets and Accountability (CFMA) claimed that unitholders would lose as much as Rs16,000 crore out of their investment of Rs28,000 crore in these schemes.
Synopsis
In a letter to the unitholders of the six shut debt mutual fund schemes, Sanjay Sapre, President, Franklin Templeton India, thanked the unitholders.
Agencies
In a letter to the unitholders of the six shut debt mutual fund schemes, Sanjay Sapre, President, Franklin Templeton India, thanked the unitholders. Sapre said that out of the total number of unitholders who cast their votes, over 96% of unitholders have voted in favour of the winding up of the six schemes.
Following are the scheme wise results:
ET Online
“We are thankful to our unitholders for voting overwhelmingly in favour of the orderly winding up in all 6 schemes. We deeply appreciate the support of our investors and partners and hope to commence distribution of investment proceeds at the earliest, subject to the directions of the Hon’ble Supreme Court. The next hearing in this matter is scheduled to take place on January 25, 2021,” Sapre said in the letter.
Franklin Templeton case: What next after investors vote for winding up 6 debt schemes
Franklin Templeton case: What next after investors vote for winding up 6 debt schemes
A majority of unitholders have voted in favour of winding up six frozen debt schemes offered by Franklin Templeton. The development seems good for investors who are now a step closer to getting back their money.
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UPDATED: January 19, 2021 13:50 IST
Overall, more than 90 per cent of the votes were cast for winding up the six schemes that were suspended in 2020. (Photo: Reuters/Representational image)
A majority of unitholders in six frozen debt schemes of the Franklin Templeton Mutual Fund have voted in favour of their closure, according to the observer’s report submitted before the Supreme Court (SC) on Monday.