Gujarat High Court has put a stay on the e-voting process of winding up of 6 Franklin India Mutual Fund schemes. This step has been taken by the court on the petition filed by an investor in the scheme, Rasna Private Limited. They have made some serious allegations in the appeal like:
- The winding-up exercise undertaken by Franklin is illegal, as the steps were taken unilaterally without the consent of unitholders.
- Fund House has also been accused of misappropriation in the application.
Right now Franklin India has not made any statement on it. They are still examining the matter after which they will give their clarifications. As per Franklin India Mutual Fund, they have taken all decisions by complying with regulations and keeping the interest of the investors in mind.
What does it mean for Investors?
The next hearing, in this case, will be held on June 12th, in which Franklin India will present its side. If the case goes on for a long time, then the process of returning investors’ money can be delayed. However, the petitioner has also made SEBI and MCA a party in this matter which should help clarify the stand or regulators.
We will keep updating you on this matter.