Gujarat High Court Stays Franklin Templeton’s Notice On Asset Monetisation
The Gujarat High Court has stayed Franklin Templeton Mutual Fund's notice to its investors seeking electronic votes for selecting the option to monetise assets to repay unitholders.
This comes after Rasna India's founder Areez Khambatta, along with an investor and a trust promoted by them, moved the court seeking a stay on the notice. They had collectively invested an amount exceeding Rs 6.5 crore in mutual fund schemes floated by the asset manager.
The investors alleged in their petition that Franklin Templeton Asset Management (India) Pvt. Ltd. decided to conduct a meeting to dispose of its properties without passing a resolution.
The petitioners said mutual fund regulations require the trustees to obtain consent of unitholders before winding up or prematurely redeeming units of a scheme. Similarly, schemes can be wound up only after repayments to unitholders. Both these requirements weren't met by Franklin Templeton, the petitioners contended.
A bench comprising Justice Gita Gopi stayed the notice and directed that notices be issued to respondents, including Franklin Templeton.
Franklin Templeton Mutual Fund froze six credit-risk schemes worth nearly Rs 28,000 crore in assets citing redemption pressure in April. Seeking to repay its investors of six debt schemes that it wound up, the fund house had offered investors two options: monetisation of assets by trustees or hiring of a third party to conduct the process.
Investors, according to the notice, were offered a choice between between Deloitte Touche Tohmatsu LLP, a liquidation and restructuring firm, and the trustee appointed by the asset manager. Unitholders are allowed to select between two of the options through e-voting during June 9-11.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
