Moneycontrol PRO

Franklin Templeton Mutual Fund to investors: Do not believe in ‘baseless’ accusations

Franklin Templeton was commenting on the press release issued by CFMA.

September 29, 2020 / 09:54 AM IST

Franklin Templeton Mutual Fund (FT MF) on September 28 told unitholders of the schemes under wind-up, not to believe unsubstantiated rumours and baseless accusations levelled by Chennai Financial Markets and Accountability (CFMA).

The fund house was commenting on the press release issued by CFMA, citing that the Economic Offences Wing (EOW) of Chennai police had registered a first information report (FIR) against the fund house and its top executives.

“While we cannot comment on the FIR as we have not seen its contents, it may be noted that filing of an FIR is simply the preliminary step in an investigation. Since the business has been carried out in compliance with the applicable laws and all decisions were taken in the best interest of our unit holders, we are confident about the outcome of any true and fair investigation conducted in this regard,” the communication read.

It added that the press release issued by CFMA citing the FIR, is replete with various misleading and baseless allegations, "besides being inappropriate", as the matter is currently subjudice.

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The letter sought to assure unitholders that there was no misutilisation of funds as the books of the six schemes under wind-up was regularly audited by internal auditors, statutory auditors and auditors appointed by the regulators, who never made any such observations.

It also said that while it respected all statutory authorities including EOW, the Securities and Exchange Board of India was best-placed to handle any issues related to mutual fund investments.

Since April 24, the schemes under wind-up have received Rs 7,184 crore from maturities, pre-payments and coupons. Four of the six schemes under wind-up have turned cash positive.

The fund house said that its focus remained on maximising value for unitholders in these schemes and returning monies as soon as possible in accordance with the applicable regulations, subject to the decision of Karnataka High Court, which has concluded hearings the arguments on matters related to wind-up of six schemes.

Jash Kriplani
first published: Sep 29, 2020 09:54 am