Gujarat HC stays e-voting process for winding up of Franklin Templeton's 6 debt schemes

The Gujarat High Court on June 3 stayed the e-voting process for the winding up of Franklin Templeton's six debt schemes.

The next hearing in the matter has been scheduled for June 12.

"We are examining the matter and will take appropriate steps as may be required. We continue to follow due process, both in making investment decisions and in the winding up of these schemes. We have acted in the best interest of our investors and in accordance with all regulations," a Franklin Templeton spokesperson said.

Franklin Templeton's e-vote was to be held from June 9 to June 11, while the unitholders' meet was scheduled to take place on June 12 later this month.

As per reports, the Securities and Exchange Board of India (SEBI) has hired a forensic audit firm and a charted accountant to inspect the dealings of the six schemes closed by Franklin Templeton Mutual Fund India.

On April 23, Franklin Templeton Mutual Fund had said it would wind up six 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 - citing severe illiquidity and redemption pressures caused by the COVID-19 pandemic.

Also Read | The inside story of what led to the mess at Franklin Templeton