Gujarat High Court on Wednesday stayed Franklin Templeton Mutual Fund’s e-voting process, which was due to begin on June 9 and close on June 11, on the winding up of its six debt schemes.
The next hearing has been scheduled for June 12.
“By way of ad-interim relief, the operation and implementation of the notice dated 28.05.2020 regarding E-voting and Unit-holder’s meeting send through Email by respondent no.3 herein shall remain stayed,” the high court said in its order.
Post the verdict, the mutual fund firm said, “We are examining the matter and will take appropriate steps as may be required. We continue to follow due process, both in making investment decisions and in the winding up of these schemes. We have acted in the best interest of our investors and in accordance with all regulations.”
Last month, the fund house had closed six of its debt funds, citing redemption pressures and lack of liquidity in the bond markets.
These schemes, together having an estimate amount of over Rs 25,000 crore assets under management, were Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.