Business Desk, Amar Ujala, New Delhi
Updated Tue, 24 Nov 2020 02:26 PM IST
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In a letter to investors, Franklin Templeton President Sanjay Sapre said that after the High Court order, the mutual fund company has considered all possible options for returning funds to investors in the last few weeks at least and serially. It also includes the option to seek the consent of the investors.
Further, Sapre said that, ‘After much deliberation, we have come to the decision that necessary judicial intervention will be sought from the Hon’ble Supreme Court to ensure proper compliance of the law in the interest of investors. This process will take some time because these steps need to be taken very carefully. So that investors’ money can be returned at the earliest and without selling the securities under pressure. In October, the Karnataka High Court said in its order that Franklin Templeton Trustee Services Private Limited’s decision to wind down six schemes could not be implemented without the approval of the investors. These six schemes of Franklin Templeton are – Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Short Term Income Plan, Franklin India Credit Risk Fund, Franklin India Dynamic Acquire Fund and Franklin India Income Opportunity Fund.
The company closed these six schemes on 23 April, saying that it was opposed to the lack of cash in the bond market.