Notice to mutual fund firm for shutting down six schemes

Chennai

A division bench comprising Justice M Sathayanarayanan and Justice Anita Sumanth ordered notice returnable by June 23. The bench also allowed private notice through e-mail.

Appearing for the petitioners, senior counsel AL Sundaresan submitted that a detailed complaint has been given to SEBI against Franklin Templeton and its managerial personnel regarding the unwise/improper investments made in companies that do not have AAA or AA ratings. All of a sudden, the schemes were wound up leaving the investors in the lurch.

“The matter involves crores and crores of money, and most investors made their investments from their life savings and therefore, it is high time SEBI take immediate, necessary and appropriate action to stem the rot,” Sundaresan said.

The PIL has been moved representing various stakeholders, especially the depositors in the six funds floated. SEEBI standing counsel Sivakumar is set to a file a status report with supporting documents during the next hearing.