MUMBAI: Twenty-two days after Franklin Templeton India shut down its six debt schemes and left 300,000 investors in the lurch, the fund house on Friday said a negative outcome to e-voting would delay the refund process.
This has thrown open a legal debate on the varied interpretation of a 24-year-old mutual fund winding up norm crafted by Securities and Exchange Board of India (Sebi).
The policy guideline has never been tested or updated since 1996. This adds to uncertainty over refund of ₹25,658 crore stuck in these schemes.
On 23 April, Franklin Templeton India wound up six of its debt schemes due to illiquidity and redemption pressures amid covid-19 disruptions.