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Franklin Barred From Shutting India Funds Until Audit Shared

  • Gujarat Court stays order to curb e-voting for investor nod
  • Court says even Sebi had asked for a forensic audit report
Updated on

An Indian court barred Franklin Templeton from liquidating the debt funds it abruptly shut in April, until it disclosed the findings of its forensic audit amid allegations of fraud, prolonging the unitholders’ wait to recoup 200 billion rupees ($2.6 billion) invested in the plans.

The High Court of Gujarat on Monday restricted Franklin from conducting e-voting seeking approval from investors to wind up the six shuttered funds, according to the court documents. After the order, the asset manager suspended the voting that was scheduled to begin Tuesday.