SEBI has filed an appeal against the Gujarat High Court decision of staying the e-voting exercise of Franklin Templeton India Mutual Fund.
In its petition, SEBI said that stay order on Franklin Templeton Mutual Fund e-voting exercise is detrimental for 3 lakh investors of wound up schemes.
SEBI said, “Since there is urgency in the matter we are desirous for urgent circulation of the matter, as continuation of stay is causing grave harm and prejudice to more than 3 lakh unit holders of the scheme as well as being against the interest of appellants also. The stay granted by this court is also being mentioned in various courts. The impugned order contrary to the provisions of the regulations restrains an extra-ordinary general meeting of the unit-holders of the opponent unless the forensic audit report to be obtained by SEBI is made public. The Hon’ble Supreme Court in a petition filed under Act 32 on the same subject by the investors has observed that investors should exhaust the alternate remedy.”
The stay order has delayed the repayment of assets as the entire e-voting exercise was to decide the liquidation process only.
In another case, Franklin Templeton MF has appealed to the Supreme Court challenging the Gujarat High Court decision to stay the e-voting exercise of Franklin Templeton India Mutual Fund.
