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Franklin investors move SC after AMC urges Gujarat HC to vacate stay on e-voting


New Delhi-based investors in the scrapped debt schemes of Franklin Templeton have filed a writ petition before Supreme Court after the fund house on Friday filed a petition before Gujarat High Court, urging it to vacate the stay on the company’s e-voting process. The Supreme Court is likely to hear the matter on Tuesday.

Seven Delhi-based investors, including Sanyam Jain, Sarika Mittal, Aakansha Maheshwari and Priya Meghnani, have urged the highest court to order a stay on the winding up of six debt fund schemes and the electronic voting process initiated by the fund manager from June 9. They also want the court to direct the Securities and Exchange Board of India (Sebi) to appoint an administrator to take over the functioning of Franklin Templeton AMC and its trustee.

“We are examining the matter and will take appropriate steps as may be required,” Franklin Templeton spokesperson told ET. “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.”

Investors alleged that the asset management company closed six debt schemes without seeking unitholders’ approval.

The Gujarat High Court on Wednesday put on hold Franklin Templeton Mutual Fund’s electronic voting process for winding up of the six debt mutual fund schemes following a petition that the asset manager’s trustees did not seek unitholders’ consent before scrapping them. The case will be heard on June 12.





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