The Madras High Court has issued notices to the Securities and Exchange Board of India (SEBI) along with Franklin Templeton Mutual Fund and its top officials after a public interest litigation (PIL) was filed by a Chennai-based group against the abrupt winding up of six debt schemes by the fund house last month.

The court, on May 26, passed an interim order while directing SEBI to file a status report. The PIL has been filed by the Chennai Financial Markets Accountability (CFMA).

CFMA also plans to get more unit holders of the affected schemes through an online petition, which it then plans to file with the Securities and Exchange Commission (SEC) as the parent entity Franklin Templeton Investments is based in the U.S. The PIL alleged that while the fund house had said that recovery of the money could take around five years, the approximate quantum of loss to the investors would be ₹22,400 crore.

Responding to an email query by The Hindu, a spokesperson for Franklin Templeton MF said the fund house is examining the matter and will take appropriate steps as may be required. An email query sent to SEBI remained unanswered till the time of going to press.

You have reached your limit for free articles this month.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access

Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations

A select list of articles that match your interests and tastes.

Faster pages

Move smoothly between articles as our pages load instantly.

Dashboard

A one-stop-shop for seeing the latest updates, and managing your preferences.

Briefing

We brief you on the latest and most important developments, three times a day.

Not convinced? Know why you should pay for news.

*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here