Friday, December 4, 2020
154,225FansLike
654,155FollowersFollow
0SubscribersSubscribe
Want create site? Find Free WordPress Themes and plugins.

No winding up of 6 schemes sans consent of majority unitholders, Karnataka High Court tells Franklin Templeton

Want create site? Find Free WordPress Themes and plugins.

New Delhi (ILNS): The Karnataka High Court today ruled that Franklin Templeton trustees should not take any action on the winding up of its six schemes till a simple majority consent of unit holders is obtained. 

The division bench of Chief Justice AS Oka and Justice Ashok S Kinagi passed this order while hearing a batch of pleas related to the winding up of six Franklin Templeton mutual fund debt schemes.

The High Court ordered: “We hold and declare that the decision of the Trustees to wind up 6 schemes mentioned in paragraph 1 of the judgment, by taking recourse to sub-clause (a) of clause 2 of Regulation 39 of the Mutual Fund Regulations cannot be implemented unless the consent of the Unit Holders is obtained in accordance with sub-clause (c) of clause 15 of Regulation 18. Hence, we restrain the trustees from taking any further steps on the basis of the impugned notices dated 23rd April 2020 and 28th May 2020, with the consent of the unitholders by a simple majority till the decision of winding up is obtained by the Trustees in accordance with sub-clause (c) of clause 15 of Regulation 18 of the Mutual Fund Regulations.”

The High Court also put a restraint on the operation of the judgment for six weeks and said during this period there should not be any redemptions, adding that ‘status quo should be maintained as of today’.

The Court further clarified: “If Trustees violate SEBI Act or the MF Regulations, a High Court can issue Writ of Mandamus under Article 226 to the Trustees”.

Earlier, the Supreme Court had transferred petitions against Franklin Templeton from different High Courts to the Karnataka High Court and directed it to dispose of the matter within three months. 

On April 23 Franklin Templeton decided to wind up six of its debt schemes citing redemption pressures and lack of liquidity in the bond market.

-India Legal Bureau

Did you find apk for android? You can find new Free Android Games and apps.

News Update

Delhi High Court grants bail to journalist Rajeev Sharma in espionage case

The court said that despite more than 60 days after the accused was arrested in this case, the charge sheet was not filed, hence the accused is entitled to default bail.

Is this the Golden Age of Ram’s Kingdom?

Modern jurisprudence in India can be compared with justice that prevailed during Lord Ram’s reign. While there are many differences with these ancient precepts, commonalities in both legal codes are interesting.

Pulast Tiwari encounter: High Court summons UP govt in plea seeking CBCID probe into killing

The Lucknow Bench of the Allahabad High Court on December 03, has summoned the Government while hearing a plea filed by Manjula Tiwari seeking an investigation by CBCID of the alleged encounter of Pulast, to file a reply in three weeks.
Did you find apk for android? You can find new Free Android Games and apps.