It added that the report given by Sebi in a sealed cover to the court is not final but tentative and was not relevant for adjudication of the present issues. The court has given Sebi six weeks to make a decision on the forensic audit report.
The High Court has stayed the operative part of the judgment for six weeks for appeal, during which time no redemptions will be allowed. It asked the trustees and the AMC not to make any borrowings or clear any liabilities during this period.
"We are studying the order issued by the Hon'ble Karnataka High Court and will take appropriate steps in consultation with legal experts in the best interest of unit holders," said a Franklin Templeton
Earlier this month, the court passed an order to take on record duly notarised copies of affidavits filed by the asset manager (e-filed originally) as per the standard operating procedure of the court.
The case against the asset manager was filed by some unitholders of the six debt schemes that were shut in April.
In April, Franklin Templeton
decided to wind up six of its debt schemes oriented towards high-yield investments with total assets under management of over Rs 25,000 crore. It cited continued redemption pressure and lack of liquidity in the debt market, amid the coronavirus-induced lockdown, for the closure.
A few weeks ago, the EOW of the Chennai Police registered a first information report (FIR) against the asset manager and Franklin Templeton Trustee Services for an alleged criminal conspiracy to defraud 300,000 investors by causing wrongful loss to them and unlawful gain to themselves.