CFMA alleged that Amfi was undermining a lawfully registered FIR against FTMF when it was not privy to the forensic audit. It said that Amfi was turning a blind eye to the fact that the FIR was registered in full fairness and the matter was discussed in the Karnataka High Court, and EOW, Chennai was given enough time to investigate the matter following which it found merit in registering the FIR.
CFMA further added that the performance of bodies like Amfi needed closer examination to stop recurrence of risks like FTMF, and to ensure that the body sought the protection of investors rather than functioning as a marketing agency.
“It is rather intriguing as to why Amfi showed a complete lack of interest towards the pain and suffering of 300,000 unit holders and remained a mute spectator during the entire proceedings in the last six months but has now suddenly sprung up against the FIR registered against Franklin Templeton,” it said.
In a letter to the Securities and Exchange Board of India a few days ago, Amfi had said that asset management companies
were concerned that bona-fide decisions and actions of mutual funds, which could go wrong owing to factors beyond their control, could be construed as criminal action.
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