SC directs Franklin Templeton to pay Rs 684 crore to unit holders

The Supreme Court of India ordered Franklin Templeton to pay the next round of payment of Rs 684 crore to its unitholders, according to CNBC-TV18. The next hearing in the matter will be held in December 2022.

The SC had ruled that consent of unitholders is mandatory when winding-up schemes of a mutual fund. While the order on other aspects of Franklin Templeton wind-up case is still pending, the apex court gave its view on how SEBI’s wind-up regulations should be interpreted.

Also Read: Franklin Templeton order: Supreme Court upholds consent of unitholders must in winding-up of mutual fund schemes

The SC took view that after wind-up notice is sent to unitholders, fresh investments and redemptions in the schemes can be frozen, but after this unitholders’ consent on winding-up needs to be taken before moving forward.

Last month, Franklin Templeton said it is not leaving the country and will be rebuilding the crisis-hit brand. "It would be silly to leave India, its president for India," Avinash Satwalekar, told reporters. "I can say categorically that we are not leaving India. "
Satwalekar acknowledged the speculation about the company following the footsteps of its other foreign peers in exiting India especially after the Sebi action in the debt schemes, but made it clear that it has no such plan.