NEW DELHI: Stock brokers’ body Association of National Exchanges Members of India (ANMI) has requested the Central government to take over the management of Franklin Templeton India after it suspended its six mutual fund debt schemes on Thursday.
In a letter dated April 26 to SEBI and the Finance Ministry, ANMI, which represents 900 stock brokers, has requested that a high-powered committee be appointed to take over the management of the fund house and examine its investment decisions.
It has asked them to take steps to stop further erosion of investors’ wealth, to inform the investors of these six schemes in a time-bound manner, and also about the modalities for them to get back their investments.
Franklin Templeton Mutual Fund closed six of its debt funds on Thursday, citing redemption pressures and lack of liquidity in bond markets.
These are Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.
Apart from these, six Fund of Funds of Frankling with a combined exposure of Rs 422 crore in the suspended schemes, are also kept under watch, sending shock waves in the entire MF industry.