Unit Holders Forum


Case filing from CFMA

By vig- 03 December 2020 10:36 AM

Thanks CFMA for putting up a fight for the investors.

Nice to see the case details in the supreme court :

https://main.sci.gov.in/php/case_status/case_status_process.php?d_no=26162&d_yr=2020

All ....

Comments
By Pradeep, January 31 2021 09:39
The focus now has to be on retrieving the maximum amount of money with minimum amount of delay. there is no question of allowing the AMC to continue to hold the funds when they have already expressed their inability/ reluctance to do so. CFMA is only musddying the waters and causing inordinate delay in allowing a resolution. I would appreciate if you actually think of the small investor benefit rather than trying to squeeze the AMC through a Class Action suit which in itself presents the opportunity for several unethical practices to flourish. If you want to focus on anything, then do so on ensuring that the winding up process is as effecient and transparently done by whoever is appointed to undertake the procedure. I dread to think what will happen to the small investor if there is a NO vote and then funds once again reopen for redemption.

By sameer, January 22 2021 03:26
The Supreme Court of this country has also agreed not to divulge the details of the forensic audit report with unitholders. This is biggest surprise and also agonizing for the investors.

Six shut debt schemes garner 941 crore? A complete eyewash!

By Gunjan Sriwastav- 20 November 2020 01:12 PM

Recently there have been reports regarding Franklin Templeton MF's tall claims that the six shut schemes have received 941 crore maturities, prepayments and coupon payments in a fortnight, between October 30 and November 13. This apparently includes Rs 814 crore received as prepayments and takes the total cash flows received till date since Apri....

Comments
By rajeev gupta, December 19 2020 09:09
What is point inverting f the money has already been siphoned off by Franklin managers illegally and unethically .Forensic report and action against Ft manager is the need of hour

By shailendra mishra, December 18 2020 11:13
Vote yes or no plz advice

An SPV for FT to purchase units held by us

By Sridhar MK- 16 November 2020 08:55 PM

The shutting down of these open-ended debt funds by FT has the implication of complete cessation of redemptions, dividends, and of course, new subscriptions. It has seriously aggrieved the investor community, particularly a vast number of senior citizens, who depended on funds such as these to setup SWPs, or dividend flows, so as to augment pens....

Comments
By Yethirajulu Vidyan, November 18 2020 06:58
Sridhar Sir, Please understand that this issue is now TOTALLY in the hands of Hon. KHC. SEBI or FT AMC, NOBODY can do anything unless Hon. KHC gives the direct orders for the same! And courts will ONLY follow the written Regulations [of the Govt. appointed Regulator] which are already in place - that means existing SEBI regulations. In case, FT AMC DOES NOT conduct uinitholders consent vote by email-website logins before December 4th, then by Default on December 7th all 6 schemes will be fully opened by vacation of Hon. KHC stay order and there will be a mad rush of panic-herd mentality redemptions. It seems that in a distributor meet this month 1st week, FT has indicated there will be mark down of NAV [example- USBF UST funds maybe 30% mark down of NAV value in case of Re-Open of funds]. So, in that case of default Re-Open, then all redemptions will have 30% losses! In case unitholders votes to re-open the funds then old Year2016 SEBI rule of 2 lakhs per investor per day redemptions limit is there. But, then again there will be HUGE losses [CFMA is batting on 2 lakhs per investor per 10 days redemption limits]. FT AMC CAN in good faith buy all the 6 schemes assets and pay back all investors 100% fully. But, that means a 4 BILLION usd hit for FT-India which they WILL NOT be able to bear. FT USA could not care less for Indian investors in reality and they will not help at all. Hon. RBI-FM also not care now, as they have their hands really full with PMC-YES-LVB Banks failures and takeovers. SO, LAST AND FINAL BEST OPTION FOR INVESTORS-UNITHOLDERS, IS TO PRAY FOR THE VOTING TO START AND PLEASE ALL LET'S VOTE TO SIMPLY CLOSE THESE 6 SCHEMES PERMANENTLY SIR! Then in UST-USBF, you will get back 43% of cash positives quite quickly within 3 months. And within one year at least 90% of total investments will go directly to your demat bank account! Re-Opening has a lot of other problems involved and Hon. courts cannot understand the debt funds processes - SEBI is the real domain expert here and should have handled this FT closures issue right from the beginning itself. A markdown of any debt asset held by one AMC, will affect the same asset's valuations in ALL other AMC's as well. And this can trigger a contagion effect and cause total collapse of all Debt & Equity MF's in India also possibly! Equity NSE-BSE Markets will collapse totally too... Closures of the 6 schemes will mitigate all these issues, and provide a really smooth transition to transfer all of your NAV Holding units, into your Demat Bank account as cash really Sir! PRAY REALLY HARD THAT, FT AMC WILL SEND THE MAIL FOR VOTING SOON, AND PLEASE KINDLY JUST VOTE TO CLOSE THESE 6 FUNDS PERMANENTLY SRIDHAR SIR...... Courts WILL NOT listen to options as proposed by investors. KHC has denied and disposed the Intervening Petition of some investors for Cash Positive payouts. KHC has denied and disposed Khambhattas GHC-petition to rollback NAV's to April 22nd 2020 values. So, it is no use really to try and give Hon. KHC the suggestions as you have proposed. FT AMC will NEVER buy back our NAV units partially or fully also! ONLY Upon Closure of these funds we can get cash positives as payouts very quickly..

Franklin Templeton Debt Fund Scam

By Col Mahesh Ramachandran- 15 November 2020 08:34 PM

There is no doubt that this is a scam of humungous proportions - much bigger than Yes Bank or PMC Bank.

The following questions need answers.

  1. Why have only these Franklin funds been affected by COVID?
  2. Why are the Finance Minister and Prime Minister silent on this?
  3. Why is the role of SEBI's complicity in....
Comments
By Col Mahesh Ramachandran, December 17 2020 01:35
Frankly the SC decision is baffling. They have put the investors in a 'Damned if you Do and Damned if you dont' situation. A YES vote will lend legitimacy to the scamsters and scroundrels masquerading as Trustees of FT, without any idea of when and how much will the investors receive back. A NO vote will mean opening up of the schemes - with or without a cap on redemptions. If it is with a cap on redemptions, then it may be good to vote for. Why did the Honourable SC not order FT to refund the cash positive amounts on pro rata basis to all investors. And why cant FT do this suo moto, like they did for the Vodafone segregated portfolio? Why did the SC not impound the passports of all the FT trustees? Now one is very confused whether to vote YES or NO. The trustees and those responsible for this scam including SEBI personnel and Indian lawyers defending FT will rot in the darkest corners of hell if the investors do not get their dues back.

By Col Mahesh Ramachandran, December 17 2020 01:35
Frankly the SC decision is baffling. They have put the investors in a 'Damned if you Do and Damned if you dont' situation. A YES vote will lend legitimacy to the scamsters and scroundrels masquerading as Trustees of FT, without any idea of when and how much will the investors receive back. A NO vote will mean opening up of the schemes - with or without a cap on redemptions. If it is with a cap on redemptions, then it may be good to vote for. Why did the Honourable SC not order FT to refund the cash positive amounts on pro rata basis to all investors. And why cant FT do this suo moto, like they did for the Vodafone segregated portfolio? Why did the SC not impound the passports of all the FT trustees? Now one is very confused whether to vote YES or NO. The trustees and those responsible for this scam including SEBI personnel and Indian lawyers defending FT will rot in the darkest corners of hell if the investors do not get their dues back.

Did the Trustees do their fiduciary duty at FTTSPL at all?

By Jagdish Patel- 02 November 2020 04:22 PM

And here is more dope on the dubious role of Franklin Templeton Trustee Services Private Limited (FTTSPL), the so-called trustees of Franklin Templeton Asset Management Company (FTAMC)

  1. April 9 – 22, 2020 - Borrowing enhanced from 20 % – 40%
  2. April 14, 2020 – suggested, as a last resort, redemption may be stopped up to 90 ....
Comments
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By Pritesh Somani, November 04 2020 03:03
I think, it is good that an organization like CFMA is trying to legally protect unit holders claims against FTMF which has closed the 6 schemes, something which has not happened with any other Mutual Fund in the industry. Apparently, the Court Order required FTMF to obtain approval of unit holders on merger of schemes as per MF Regulation 18(15)(C) before it treats winding up as given and starts identifying a mechanism for liquidation. In case merger fails, then FTMF will have to start redemption of Units and failure to do so will mean default by FTMF in which case FTMF will be entitled to regulatory action by SEBI. In case merger is approved, then the portfolio of the 6 schemes will have to be liquidated by FTMF or its agent as may be approved by the unit holders. Before FTMF seeks approval of the unit holders, it is expected, as per international good governance norms, that FTMF defines what is expected to be recovered and in what time frame so that the unit holders treat their consent on some concrete basis with full information. In normal redemption process, NAV defines the money a unit holder gets and the regulations define the period of 10 days within which time redemption has to be done. Therefore, as in normal redemption, time and value, is transparently known upfront, in exceptional case of FTMF, like, winding up, also the expected redemption time and redemption value should be ideally made known. But since the matter has wide implications for the MF industry, all concerned need to take a strong yet cautious approach in the court. As media reports suggest, all parties are likely to approach the Supreme Court to seek clarification on this case so that rest of the industry can operate within a transparent regulatory environment. Organizations like CFMA and other petitioners who contested the case should also undertake legal remedy for the benefit the unit holders of FTMF wound up schemes and fight for more transparent mutual fund operations so that FTMF like episodes are not repeated in future. Let’s hope for the best.

Questions raising lack of Trust on Trustees of FTMF

By Suraj Agrawal- 31 October 2020 12:03 PM

Before I pose some very disturbing questions about the so-called trustees of Franklin Templeton Mutual Fund company, let us first understand how it was set up. So, Franklin Templeton Trustee Services Private Limited (FTTSPL) is a limited liability company set up on December 19,1995 as a subsidiary of Franklin Templeton Holding Limited, Mauritius....

Comments
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By Ramkrishna Bishnoi, November 02 2020 03:29
In short, Trustees is a very nice name given to a company that is basically formed to cover-up the sins of FT AMC . From this post, i don't see the so-called trustees performed their supposed duty at all! In fact, it looks as if FTAMC's first protective gear is none other than the Trustees co itself, and worse, for even more protection, they have market regulator SEBI itself to protect them! The message is clear: Investors can go to hell!

Who were the privileged unit holders who redeemed up to 8000 crores in March and April 2020

By Amirthalingam chandar- 17 October 2020 05:05 PM
This is an important question. At the cost of middle class retail unitholders, the fund house according to media reports borrowed and redeemed nearly 8000 crores of units in the shuttered schemes in March and April 20. THIS IS A BIG SCAM. WHO WERE THE PRIVILEGED UNIT HOLDERS. The net result is that two of the six schemes are still cash negative. ....
Comments
By JohnSumu, October 30 2020 11:40
ALL HERE PLEASE READ THIS CAREFULLY - https://economictimes.indiatimes.com/mf/analysis/what-will-happen-now-ask-franklin-templeton-debt-mutual-fund-investors/articleshow/78887907.cms

By Sam, October 28 2020 09:08
Why is SEBI still sooooo mum about their dealings on this case even after KHC rapped them pretty badly on their knuckles for being a side dumb spectator so far? Why is SEBI not influencing KHC judges on the importance to distribute cash positives to investors right now?? So many questions abound but no proper answers offered at all by any party until now!! CFMA Sirs please take up the baton in SC to strongly represent unitholders plight and push SC judges influence them to order payouts of cash positives to all unitholders at the earliest Sirs...

Market Irregularities: Franklin Templeton repeatedly fined by Global Regulators

By Vinay Murty- 16 October 2020 04:46 PM

Friends, ever since Franklin Templeton Mutual Fund abruptly closed down 6 debt schemes six months ago collectively pushing over 3 lakh of Unit Holders like us into this Rs 28,000 crore black hole, I have been spending sleepless nights over the internet trying to find out more about these guys. And to my utter shock and dismay, I have found that ....

Comments
By JohnSumu, October 30 2020 11:41
ALL HERE PLEASE READ THIS CAREFULLY - https://economictimes.indiatimes.com/mf/analysis/what-will-happen-now-ask-franklin-templeton-debt-mutual-fund-investors/articleshow/78887907.cms

By Raghunath Jha, October 28 2020 06:20
Superb info on franklin frauds. But what to make of this? That all over world, these people take investor money and mismanage it? Rampant malpractices allowed? How come?

SEBI, AMFI ought to explain these policy issues regarding FTMF

By Lalit Jain- 15 October 2020 01:30 PM

I have gone through the previous topic on this forum and even I am equally agitated by the goings on at FTMF. It will now be six months on October 24, 2020 that FTMF abruptly effected the closure of six debt schemes, and we have no sign as to whether we will get our money back or not. Hence, I think, it would be only appropriate that the followi....

Comments
By Samuel, October 29 2020 08:17
For FTI USBF mf we want the LATEST NAV balance and NOT the April 23rd one Sirs.....! Please correct that each fund is a different story here really, and cannot be treated as a basket case.. Check each fund separately- Income funds are still paying off loans and are in negative balance and so, how will FT-SEBI open up such funds for redemptions? USBF is the only fund with good cash positive and can be safely opened but again same situation will happen after the first few unitholders redeem 2 lacs for 30 days! I feel simply Declare all funds as 'DISTRESSED' now and just close them permanently return cash positives in balance so far back to investors and sell assets for fair values and refund investors over the years..

By Pratik Thakkar, October 28 2020 09:17
I will repeat your points: we need full money back as on April 23, 2020 & order audit of all FTMF schemes n see if there is any human malware there too. Can’t trust franklin anymore.

FTMF fraud: Not just a case of Breach of Trust

By Sanjive Srinivasan- 12 October 2020 06:34 PM
Untitled 1

As a Unit Holder in the Franklin Templeton Mutual Fund scheme (FTMF) which they closed down abruptly in April this year, I have been following the matter closely and going through media reports regarding the same. Now, the forensic audit repor....

Comments
By Karthikeyan D, November 13 2020 03:04
I DISAGREE with Jyothish. FT USBF-UST Debt funds CAN be re-opened safely; BUT, as long as VERY STRICT limits on Redemptions are maintained. Example- re-open USBF UST fund and maintain SEBI imposed mandate limit of just 20% redemptions of Total Unitholdings Allowable per investor per year only; VERY STRICTLY!! Then UST can be operated safely forever I feel.. Other funds depends on the cash positive situation really, and I am not sure about them??

By JyothishK, November 12 2020 09:39
Re-OPEN of All or Any of these 6 Debt funds schemes = 100% TOTAL DISASTER for all investors!