Categories: Business

Proposed e-voting to close Franklin Templeton MF's loan plans postponed, investors stranded 28,000 crores

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franklin templeton mutual fund

new Delhi. Franklin Templeton MF has postponed the proposed electronic voting process to decide on the closure of its six loan schemes. The voting was to be held from June 9 to June 11. Along with this, the online meeting of investors on June 12 has also been postponed. The Gujarat High Court had ordered a halt to e-voting and investors' meeting and also rejected the fund house's plea to reconsider the decision.

Franklin Templeton MF said in a statement that as per the order of June 8, 2020 of the Gujarat High Court, the proposed e-voting on 9-11 June 2020 in relation to the discontinued schemes and the investors meeting to be held on 12 June 2020 is next Information has also been postponed.

The fund house had given two options to the affected investors during the e-voting, either to demonetize the assets by the trustees or to use third party services to complete the process. Apart from these offerings, investors also had the option to reject both these processes, but this would only delay the demonetization of assets.

In this regard, the investors filed a petition in the Gujarat High Court alleging that it was illegal for the fund houses to discontinue the loan schemes. Hearing this petition, the Gujarat High Court had stayed the process of e-voting to discontinue the schemes. The company closed six loan schemes in April citing lack of cash in the bond market and pressure from investors to withdraw their funds.

These schemes were Franklin India Low Duration Fund, Franklin India Dynamic Acquired Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunity Fund. Around 28,000 crore rupees of investors are stranded in these schemes.

This post was published on June 9, 2020 1:31 pm

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