Finance Ministry, Sebi question mutual funds on Franklin Templeton fiasco

Govt gives RBI go-ahead to ensure liquidity; distributors seek special window for small investors

The finance ministry and the Securities and Exchange Board of India (Sebi) had discussions with the mutual fund (MF) industry on Sunday to assess the fallout of the Franklin Templeton fiasco. The regulators and the ministry are worried about the impact of Franklin Templeton MF’s move to wind up six of its debt schemes, and its repercussions on the corporate debt market. 

Industry experts said Franklin’s action would impact as many as 310,000 investors, of whom 300,000 are retail and high net worth investors. 

Industry players had conference calls on Sunday afternoon, first with Sebi, followed by another call with