InvestorQ : What is Franklin Templeton’s response after the Gujarat High Court asked them to stay the e-voting process for liquidated funds?
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What is Franklin Templeton’s response after the Gujarat High Court asked them to stay the e-voting process for liquidated funds?

Answer
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Niti Shenoi answered.
3 months ago


It maybe recollected that last week the Gujarat High Court had ordered a stay on the e-voting process that Franklin Templeton Mutual Fund wanted to initiate with the unit holders of the six funds which they had proposed for liquidation. Meanwhile, the mutual fund has filed a petition before the Gujarat High Court opposing the stay order on the e-voting process with a plea to allow e-voting scheduled from June 9-11. Back in late April, Franklin Templeton had summarily wound up 6 debt schemes with AUM of about Rs.28,500 crore. This was done to prevent further dilution of value due to lack of liquidity but the pressure had clearly come from the debt fund managers shooting from the hip. Under the e-voting process, the unit holders could either authorise the trustees and the fund house to monetise the assets. The other option was to appoint Deloitte to undertake the process. The stay was sought by the investors on the grounds that the basic protocol for fund winding up was not adhered to.