Franklin Templeton Mutual Fund (MF), which shut its six schemes in April 2020, is facing the heat from the Enforcement Directorate (ED) and the Securities and Exchange Board of India (Sebi). According to sources, while the ED has registered a money-laundering case against the fund house and eight others, the market regulator has issued a show-cause notice and summons to the company and its key personnel who redeemed their investments days or weeks before the closure announcement. “Sebi has started adjudication proceedings into alleged breach of Fraudulent and Unfair Trade Practices (FUTP) regulations after an audit finding revealed that several individuals and entities linked to the fund house redeemed their holdings in excess of Rs 50 crore.