Franklin Templeton India did not take any approval from the Securities and Exchange Board of India (Sebi) before it decided to shut down its six debt schemes, a right to information (RTI) reply has revealed.
This gives a fresh twist to the issue as the asset management company (AMC) had claimed that it had kept the regulator informed about the winding up of the schemes at every step. The AMC had decided to shut down its suite of six debt schemes on 23 April following severe illiquidity and redemption pressures due to covid-19.
The reply was to an RTI query by an investor of Franklin Templeton, the Khambatta family (promoter director of Rasna). They were the petitioners in the case filed in Gujarat high court, where they claimed that the winding up decision required the consent of investors.
The petition led to a stay on the winding up process on 8 June. This petition, along with three others, is being heard regularly by the Karnataka high court for quicker resolution of investor grievances against the fund house.
In the RTI query, the Khambatta family said Franklin Templeton, before the Gujarat high court and in a special leave petition in Supreme Court, claimed that the winding up of the six schemes took place after taking appropriate permissions from Sebi.
The Khambattas sought information pertaining to the date on which the permission for winding up of the schemes was applied for, date on which it was granted and documentary evidence of any deliberation on the permission.