The Supreme Court on Wednesday said that it agrees with Karnataka High Court's ruling. Earlier, the Karnataka High Court has said that the fund house could have taken consent of unitholders before winding up schemes.
The apex court's judgement came on pleas, including the appeal filed by Franklin Templeton against the Karnataka High Court order.
A bench of justices S Abdul Nazeer and Sanjiv Khanna upheld the validation of applicable regulations and said that they have only dealt with the interpretation of rules and regulations on the issue and not with the facts of the case related to the winding up of the six schemes.
The court said that if trustees are in violation of the regulation, SEBI could look into the allegations.
The next hearing in the matter has been scheduled in October.
Franklin Templeton MF had closed the six debt schemes on April 23, 2020 citing redemption pressure and lack of liquidity in the bond market.
