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.
SEBI has hired Mumbai-based Chokshi & Chokshi LLP to conduct the probe, and asked the firm to submit a report within 30 working days, The Economic Times reported.
Moneycontrol could not independently verify the story.
Franklin Templeton India had in April closed six mutual fund schemes, due to illiquidity and redemption pressures caused by the COVID-19 pandemic.
Moneycontrol had reported on April 28 that SEBI may begin a probe into the six schemes, and will investigate if there was any lapse when the management and trustees performed their duties.
The Economic Times reported that Chokshi & Chokshi will investigate if there was collusion between the fund house and bond-issuing corporates, conflicts of interest of directors or senior officials, and transactions that were against the interests of investors in the schemes.
"The scope is unlimited. They have to look at all aspects and examine if there have been any regulatory violations… whether the fund house followed the rules in spirit, whether there has been circumvention of rules on fund management," a source told the publication.
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