Notice to mutual fund firm for shutting down six schemes
The Madras High Court has issued notice to Franklin Templeton Mutual Fund and Securities and Securities and Exchange Board of India (SEBI) on a public interest litigation seeking to safeguard investors’ money worth Rs 28,000 crore stuck in six schemes shut down by the mutual fund firm.
migrator
Chennai
A division bench comprising Justice M Sathayanarayanan and Justice Anita Sumanth ordered notice returnable by June 23. The bench also allowed private notice through e-mail.
Appearing for the petitioners, senior counsel AL Sundaresan submitted that a detailed complaint has been given to SEBI against Franklin Templeton and its managerial personnel regarding the unwise/improper investments made in companies that do not have AAA or AA ratings. All of a sudden, the schemes were wound up leaving the investors in the lurch.
“The matter involves crores and crores of money, and most investors made their investments from their life savings and therefore, it is high time SEBI take immediate, necessary and appropriate action to stem the rot,” Sundaresan said.
The PIL has been moved representing various stakeholders, especially the depositors in the six funds floated. SEEBI standing counsel Sivakumar is set to a file a status report with supporting documents during the next hearing.
Visit news.dtnext.in to explore our interactive epaper!
Download the DT Next app for more exciting features!
Click here for iOS
Click here for Android
