InvestorQ : What could the future for investors in Franklin Templeton debt fund schemes?
Mahima Roy made post

What could the future for investors in Franklin Templeton debt fund schemes?

Answer
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2 weeks ago


There could be some trouble brewing for Franklin Templeton AMC after a forensic audit indicated several wrongdoings including insider trading by key management personnel. Senior officials had redeemed personal investments just before the shutdown in Apr-20.

These observations were made in the forensic audit prepared by Choksi & Choksi. The fund is already facing a slew of court cases and investigations. This includes a major investigation by SEBI into the decision to shut down the six schemes in an abrupt manner.

The report indicated that the fund favoured certain companies by not exercising the put option despite being told by the Chief Risk Officer. In many cases, the put options were not exercise despite steep downgrades, raising questions of connivance.