Business

No mis-utilisation of funds: Franklin Templeton MF assures unitholders

Franklin Templeton Asset Management India has assured unitholders that there was no misutilisation of funds because the books of six shut schemes have been often audited.

The fund home additionally stated that markets regulator Sebi ought to deal with any points associated to mutual funds moderately than Economic Offence Wing (EOW).

“We have the utmost respect for all statutory authorities including EOW, however we believe that Securities and Exchange Board of India (Sebi), the specialised regulator for the securities market, is best placed to handle any issues related to mutual fund investments,” the fund home President Sanjay Sapre stated in a letter to traders.

He, additional, stated the books of the six impacted schemes are often audited by inside auditors, statutory auditors, auditors appointed by the regulators amongst others and “none of them have ever made any observation regarding misutilization of funds by the schemes”.

Franklin Templeton Mutual Fund shut six debt mutual funds on April 23 citing unfavourable situations within the debt market as a result of COVID-19 pandemic.

Earlier, Economic Offence Wing (EOW) of the Chennai Police registered a primary data report (FIR) towards the fund home for an alleged legal conspiracy to defraud traders.

In addition, the fund home stated the press launch issued by Chennai Financial Markets & Accountability (CFMA) citing the FIR, was replete with varied deceptive and baseless allegations.

CFMA accused the fund home and its high administration of conspiracy to defraud 3 lakh traders by inflicting wrongful loss to them and illegal acquire to themselves.

“Please do not believe un-substantiated rumours and baseless accusations. While we cannot comment on the FIR as we have not seen its contents,” Sapre stated.

“Since the business has been carried out in compliance with the applicable laws and all decisions were taken in the best interest of our unit holders, we are confident about the outcome of any true and fair investigation conducted in this regard,” he added.

The fund homes that the schemes below winding up had acquired over Rs 7,184 crore from maturities, prepayments and coupons since closure. In addition, 4 out of the six schemes are already money constructive.

“These amounts have been generated without the ability to efficiently monetise the portfolio,” Franklin Templeton stated.

The fund home reiterated that it acted in the perfect curiosity of unitholders.

“Our focus remains on maximizing value for unitholders in these schemes and returning monies as soon as possible in accordance with the applicable regulations, subject to the decision of the Karnataka High Court,” Franklin Templeton stated.

(Only the headline and film of this report could have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)

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