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Home / Mutual Funds / News /  Franklin Templeton Mutual Fund hit by Sebi, ED investigations

MUMBAI: The Securities and Exchange Board of India (Sebi) has summoned senior officials of Franklin Templeton Mutual Fund on account of redemptions made by them just before six debt schemes of the fund house were frozen on 23 April, media reports said based on a forensic report into the schemes by Chokshi and Choksi.

Separately, the Enforcement Directorate (ED) has filed an Enforcement Case Information Report (ECIR) against Franklin Templeton Asset Management based on a First Information Report (FIR) filed by the Chennai Police against the fund house in September, reports said.

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The ED is reportedly investigating various aspects of the case such as redemptions by senior officials and why the fund house did not exercise put options in order to realise value from its holdings before the schemes were frozen.

The investigations though may not affect the distribution of proceeds and winding up of the six schemes which the Supreme Court has placed in the hands of SBI Funds Management Pvt Ltd. The fund house has expressed confidence in being able to liquidate a large portion of the said schemes within a few weeks’ time once the apex court approves a liquidation plan.

Unit holders received Rs9,122 crore in February, of the Rs26,000 crore odd corpus that was frozen in April last year.

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