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.
Just 38 percent of Franklin Templeton’s unitholders voted: SEBI-appointed observer
The observer elaborated on a number of steps that the fund house could have taken to ensure a more robust exercise January 21, 2021 / 03:14 PM IST
The observer’s report on the recently-concluded e-voting held by Franklin Templeton Mutual Fund (FT MF) was submitted to the Supreme Court (SC). It said that the e-voting exercise was generally conducted according to the e-voting notices sent by FT MF. “However, there were many grey areas in the procedure adopted, which raised doubts and apprehensions in the minds of investors,” the report said.
The observer elaborated on a number of steps that the fund house could have taken to ensure a more robust exercise. For starters, it said that unitholders of the six schemes that are sought to be wound up, should have got one vote for each unit they held. The fund house had, on the other hand, allowed investors only as many votes as the number of foli
SEBI observer flags discrepancies in voting on Franklin Templeton debt funds closure
January 20, 2021
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There were significant variations in e-voting process followed by FTMF vis-à-vis that prescribed under the Companies Act
TS Krishnamurthy, the SEBI-appointed observer to monitor the e-voting conducted by Franklin Templeton Mutual Fund (FTMF) with regard to the closure of six debt schemes, has highlighted a number of ‘discrepancies’ in his report submitted to the Supreme Court.
FTMF had recently declared that 96 per cent its unit-holders had voted for the voluntary closure of the schemes, which together held over ₹26,000 crore.
Krishnamurthy, who was India’s 13th Chief Election Commissioner, told the apex court: “There were significant variations in the e-voting process followed by FTMF vis-à-vis prescribed under the Companies Act.” Since the SEBI (MF) Regulations, 1996 did not contain specific rules on ‘e-voting or conduct of meeting of unit-holders’, the C
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.