SEBI grants more time for Franklin Templeton MF audit: Report

The Securities and Exchange Board of India (SEBI) has extended the deadline for the audit in the investigation into the schemes wound up by Franklin Templeton.

The market regulator gave the auditor Chokshi & Chokshi, time until the end of July or first week of August to submit its findings, Business Standard reported.

Moneycontrol could not independently verify the story.

Franklin Templeton Mutual Fund (MF) declined to comment when contacted by Business Standard.

SEBI had around a month ago ordered an investigation into the closure of six schemes by Franklin Templeton MF.

Mumbai-based Chokshi & Chokshi was originally supposed to submit its findings in the first week of July.

Also read: Franklin Templeton crisis: Is Gujarat HC’s stay on voting in investors’ interest?

"Initially, SEBI had given Chokshi & Chokshi 30 days. However, the scope of the probe is quite wide and SEBI has allowed more time," a source told the publication.

The Gujarat High Court had on June 3 issued a stay order on the e-voting process that Templeton had initiated for choosing either its own trustees or Deloitte for the winding-up process of the six debt schemes.

Postponing the audit report might further delay the e-voting process, which was originally scheduled to held between June 9 and 11.