Franklin Templeton India Mutual Fund will soon allow investors of wound up schemes to decide liquidation process through e-voting exercise, said a note sent to distributors by Franklin Templeton MF.
Simply put, investors of wound up schemes can choose if they want FT trustees to go ahead with the liquation process or appoint an independent agency, Deloitte in this case, to take care of liquidation process in consultation with FT trustees and Kotak Bank through e-voting. These investors will also have an option to select ‘no’ – i.e. declining liquidation process from both the parties. However, this would only delay the liquidation process as the fund house will have to restart the entire process of liquidation again.
Remember that there is no way investors can stop the winding up of schemes as this decision was already taken by the trustees of the fund house. The entire e-voting exercise is to decide the liquidation process only.
Investors of wound up schemes will get three days to cast their votes online. Each scheme will have a separate e-voting exercise. That means, if your client has invested in three wound up schemes, he will get to cast his votes thrice. The fund house will share credentials like user id and password with investors of wound up schemes through email and SMS.
The fund house will also conduct a video conference for the investors of wound up schemes to address their concerns related to liquidation process. However, the video conference will be held on the third day of the commencement of e-voting exercise. Investors can cast their vote till the time of video-conferencing. Also, investors can cast their vote only once. They cannot make changes to their decision once they cast their vote.
Investors will get just one chance even if they hold multiple folios in a single scheme since e-voting will be held on PAN basis.
The fund house has appointed K Fintech to facilitate e-voting and video conferencing for the investors of wound up schemes. The fund house will bear all the expenses related to liquidation process, e-voting and liquidation process through the AMC book.
To understand more about the liquidation process, e-voting exercise and video conference, you can approach the fund house through a toll-free distributor helpline number 1800-425-9100 or 1800-258-9100 between 9 am to 6 pm from Monday to Friday and 9 am to 2 pm on Saturday. You can also send an email to fund house at distserve@franklintempleton.com.
Your clients will start getting credentials to cast their votes in a day or two.
