SC allows Franklin Templeton to seek investors' nod for winding up schemes

Top court slams Sebi for staying on sidelines when unitholders began redeeming their investments; redemptions to remain suspended till further notification

The Supreme Court (SC) on Thursday issued an interim order allowing the trustees of Franklin Templeton Mutual Fund to seek consent of unitholders for winding up of the six debt schemes under section 18(15)(c) of Sebi (Mutual Fund) Regulation 1996. Redemptions will continue to be suspended till further notification.

The apex court, which was hearing the asset manager’s plea challenging the Karnataka High Court’s verdict given in October, also slammed market regulator Securities and Exchange Board of India (Sebi) for staying on the sidelines when unitholders began redeeming their investments. The regulator had also drawn flak from the Karnataka HC,