The Supreme Court on Friday upheld the validity of e-voting process for winding up of six mutual fund schemes of Franklin Templeton, and said disbursal of funds to unit holders will continue.
Maulik Madhu
BL Research Bureau |
Updated on
February 05, 2021
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The AMC should distribute ₹9,122 crore to affected investors. But investors in Franklin India Income Opportunities Fund will not receive any part of this amount.
Following the sudden closure of six debt mutual fund schemes by Franklin Templeton Mutual Fund on April 23, 2020, all redemptions from the scheme were halted. Investors were left wondering when their money invested in these schemes would be returned.
On February 2, the Supreme Court directed Franklin Templeton MF to distribute ₹9,122 crore to the unitholders of the wound up schemes within 20 days. With this, the affected investors are for the first time, set to receive a part of their money blocked in these schemes since April 2020. SBI MF will handle the disbursement.
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
Supreme Court to decide on distribution of money to Templeton unitholders after hearing objections to e-voting
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Supreme Court to decide on distribution of money to Templeton unitholders after hearing objections to e-votingPTI
Last Updated: Jan 18, 2021, 07:58 PM IST
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Synopsis
The apex court is hearing an appeal filed by Franklin Templeton against the High Court s order which stopped the fund house from winding up its debt fund schemes without prior consent of the investors.
NEW DELHI: The Supreme Court Monday said it would decide on distribution of money to Franklin Templeton unitholders after hearing the submissions objecting to the e-voting process for winding up the mutual fund s six schemes. A bench headed by S A Nazeer granted three days for filing of objections to the e-voting on winding up of six mutual fund schemes of the company.
Dewan Housing Finance Corporation announced that the e-voting on
resolutions pursuant to the Eighteenth (18th) meeting of the Committee of Creditors of the Company (CoC) concluded on 15 January 2021 at 8 pm IST and the resolution plan submitted by Piramal Capital and Housing Finance (under Option I in terms of the RFRP dated 16 September 2020) was duly approved by CoC by majority voting under section 30(4) of the Insolvency & Bankruptcy Code read with Reg. 39(3) of CIRP Regulations, as the successful resolution plan.
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