The investor body Chennai Financial Markets and Accountability (CFMA) has urged the Supreme Court to help investors investing in Franklin Templeton’s closed plans. The CFMA claims that the condition of more than 10 mutual fund companies may be similar to Franklin Templeton’s, causing investors to lose Rs 15 lakh crore.
Court is the only hope of three crore unitholders
In a statement issued on Saturday, the FMA said that the only hope of the three crore unitholders of various mutual fund schemes is the courts. While not disclosing the formula behind the backing of its claim, CFMA said, it has been reported that more than 10 more mutual funds want to transfer their losses to unitholders. They are only waiting for the decision of the Supreme Court.
The Supreme Court is hearing various petitions in this regard. One of these petitions has been filed by Franklin Templeton against the decision of the Karnataka High Court. The High Court has prohibited the company from closing its debt or bond schemes without the prior consent of investors. Franklin Templeton MF announced the closure of six of its loan plans on April 23, 2020 citing withdrawal pressure and liquidity constraints in the bond market.
