Supreme Court Directs Franklin Templeton To Seek Investors Consent For Winding Up Funds
The Supreme Court on Wednesday ordered that Franklin Templeton cannot wind up debt funds without taking the consent of majority of the investors.
The Supreme Court’s judgement came on an appeal against the Karnataka High Court order which restrained the winding up of six of Franklin Templeton debt schemes without obtaining consent of investors.
The verdict was pronounced by a bench comprising Justices S Abdul Nazeer and Sanjiv Khanna.
The Supreme Court has agreed with the views of the High Court.
At the same time, it said that the consent of the majority of shareholders will be required only after the publication of notices.
The Supreme Court further added that in case trustees wrongfully seek winding up, then the Securities and Exchange Board of India (SEBI) will have the power to intervene in the matter.
It also noted that the facts in the case have not been examined at all and have been left open.