Mumbai: The Economic Offences Wing (EOW), Chennai, on Friday registered a primary info report (FIR) against Franklin Templeton India, its trustee firm, and senior administration, together with the fund supervisor, for allegedly defrauding the 300,000 unitholders caught in its six shut debt schemes. The FIR relies on a criticism filed by the Chennai Financial Markets & Accountancy (CFMA), an investor group, in May this 12 months.
This comes against the backdrop of the Karnataka excessive court docket ending listening to the arguments within the 4 investor petitions filed against the asset administration firm (AMC) against its choice to wind down the schemes.
The excessive court docket was listening to the instances collectively and has requested all events, together with the Securities and Exchange Board of India (Sebi), to make their closing submissions.
Sebi has additionally given a replica of the forensic audit report of those schemes to the court docket in a sealed envelope. The forensic audit, in keeping with a Mint report on 14 September, discovered that the fund supervisor didn’t take corrective steps when underlying bonds began turning illiquid, its short-term funds held long-term securities, and there have been extreme redemptions in months earlier than the shutdown. Concern was additionally not raised for it being the only real lender to 26 issuers. On 23 April, Franklin Templeton determined to close down its suite of six debt schemes due to extreme illiquidity and redemption pressures. These schemes had mixed asset underneath administration in extra of ₹25,000 crore.
CFMA on Friday additionally stated that it’s considering submitting a category motion go well with against Franklin Templeton world for restoration and to assert damages. It has urged all aggrieved buyers to return collectively for submitting the go well with, “particulars of which might be introduced quickly”.