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While the Association of Mutual Funds in India (AMFI) has reportedly filed a special leave petition (SLP) in the Supreme Court (SC) in the Franklin Templeton Mutual Fund (FTMF) issue, the Midas Touch Investors Association (MTIA) has asked market regulator Securities and Exchange Board of India (SEBI) to suspend for one year the registration certificate of FTMF.
In a representation addressed to Ajay Tyagi, chairman of SEBI, Virendra Jain, founder and president of MTIA, says, You are requested to suspend their respective certificate of registrations granted by SEBI, under mutual funds regulations, to undertake activities relating to operating mutual funds in India for one year for making false, misleading, biased and deceptive statements while seeking consent of unitholders via e-voting.
AMFI against seeking prior nod of investors to shutter schemes
January 15, 2021
AMFI files SLP in apex court in Franklin Templeton debt funds case
The Association of Mutual Funds in India has filed a special leave petition (SLP) in the Supreme Court in the ongoing case related to the closure of six debt schemes by Franklin Templeton.
The industry body has opined that prior approval of investors should not be made mandatory for closure of schemes, and trustees should be given full powers to decide on discontinuing the scheme in the interest of investors, said sources in the know.
Investors are parking money in mutual funds based on trust, as there is no guaranteed return, and all schemes are open to market risk. As a guardian of trust reposed by investors, trustees should be given a free hand in decision- making, he said.
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 s shut funds receive Rs 13,120 crore till now
Five out of the six schemes have already turned and have close to Rs 8,527 crore available to return to unit holders, subject to fund running expenses
Mutual Funds
Franklin Templeton s six shut schemes have received Rs 13,120 crore from maturities, pre-payments, and coupons since their closure in April, the fund house said in a statement.
Over the latest fortnight, December 16-31, 2020, these schemes received Rs 1,213 crore.
Further, five out of the six schemes have already turned and have close to Rs 8,527 crore available to return to unit holders, subject to fund running expenses. Franklin India Short Term Income Plan (FISTIP) is the latest scheme to turn cash positive, it said.
Franklin Templeton s shut funds receive Rs 13,120Cr so far daijiworld.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from daijiworld.com Daily Mail and Mail on Sunday newspapers.