Allow Cookies!
By using our website, you agree to the use of cookies
A petition was filed in the Madras HC by a group of investors’ to safeguard investment worth Rs. 28,000 crore which was stuck in six different schemes that were shut down by the fund house. In relation to the same, Madras HC has issued notices to Franklin Templeton Mutual Fund and Sebi who are hit by the crisis.
The group of investors plan to file an online petition so that they are able to gather all the investors affected by the same. They plan on forwarding this petition to the Prime Minister’s Office and the parent of the fund house in the US as well as the US markets regulator SEC.
The investors who filed the petition argue that the mutual funds and the fund managers should be held liable to answer questions that related to their choice of investment and conformity with regulatory and efficient norms.
The investor group, Chennai Financial Markets Accountability, and Madras HC issued the notices on May 26, 2020, to Sebi, Franklin Templeton Asset Management India Pvt Ltd, the trustees of the mutual fund, its president Sanjay Sapre and other significant management team members. The notices were issued after a Public Interest Litigation was filed in the Court. Looking at the seriousness of the matter and the grave consequences it can have, the HC took cognisance of the matter because the large sum that belonged to the common public was at stake. The court has asked Sebi to formulate a reply that also talks about the status of the report and the actions taken in relation to it. It was discovered that an individual could lose about 20% of their money and an individual can liquidate the recovery sum only after 5 years.
Thus, this matter gains more importance as in the times of difficulties and of extreme financial crunch, this will prove to be a huge blow on the common man’s pocket.
86540
103860
630
114
59824