“We maintain that no interference is required in the decision of the trustees to liquidate such schemes. We maintain and declare that the decision of the trustee to liquidate the six schemes cannot be implemented until the consent of the shareholders in accordance with Sub-Clause is obtained. C of Regulation 15. Therefore, we restrict the trustee to take any further action based on the notice of April 23, 2020 and May 28, 2020 issued until the consent of the shareholders is obtained. It will be opened for that the trustees obtain the consent of the shareholders and take further action, “stated the divisional bank of Chief Justice AS Oka and Justice Ashok S Kinagi in their 330-page ruling.
“The Honorable High Court of Karnataka has confirmed the authority and the decision taken by the Trustees to liquidate the plans under article 39 2) a). According to the judgment, to put that decision into practice, the approval of the participants will be required under regulation 18 (15) (c). We are considering the order and will take appropriate action in consultation with our legal experts in the best interest of the unitholders. Our focus remains maximizing the value for unitholders in these schemes and returning the money as soon as possible, “said Franklin Templeton Mutual Fund.
Franklin Templeton Mutual Fund voluntarily decided to liquidate six of its fixed income debt schemes: Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund – in April. These schemes cumulatively managed assets worth Rs 26 billion.
The fund house was in the process of conducting an electronic vote to ratify the decision when a group of investors managed to obtain a stay from the court.
Many conservative investors who have invested money in these plans to meet their short-term needs are stuck and looking hard for a quick fix. Investors cannot sell these schemes and no SIP / STP / SWP will work on these schemes.
Everything you wanted to ask about your debt mutual funds after the Franklin Templeton fiasco
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