The Karnataka High Court announced a notice in a group of appeals akin to the closure of Franklin Templeton Mutual Fund’s six debt schemes (Amruta Garg v. Union of India). Legal notice was expressed to the Central government, the Securities Exchange Board of India (SEBI) and the Franklin Templeton group of companies. The Supreme Court had ordered the transfer of all petitions regarding the closure of six Franklin Templeton India debt schemes from the High Courts of Delhi, Madras and Gujarat to the Karnataka High Court by fortnight.
The Divisional Bench composed Chief Justice Abhay Shreeniwas Oka and Justice Ashok S Kinagi ordered all parties to register their acknowledgement. The court notified that the issues registered in the Madras High Court had not been transmitted to the Karnataka High Court in accordance with the Apex Court’s order. With regard to this, the Bench commanded the High Court Registrar to notify the Madras High Court Registry to relocate these matters. In June, the Gujarat High Court halted Franklin Templeton MF’s e-voting process for closing of the six mutual fund schemes. On 13th of June, Delhi High Court had filed a notice in an appeal opposing Franklin Templeton Trustee Services’ initiative to wrap its debt funds. (Amruta Garg vs UOI & Ors) .
Franklin Templeton, India’s ninth-largest fund house, apprised its investors that it was closing up the Franklin India low duration fund, dynamic accrual fund, credit risk fund, short term income plan, ultra-short bond fund and income opportunities fund, total worth nearly Rs 28,000 crore. The company had stated short of reimbursement in the bond market due to COVID-19 for its action.