Franklin Templeton and the courts – Subramoney

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So a bunch of investors have gone to court to teach “Franklin Templeton” a lesson? Did they approach FT and say “Pay us on the side and we will withdraw”? I do not know, but I know the investors in this country, and the courts just too well, so your guess is as good as mine.

What do some of them want from the courts? I do not know, but I can guess that mostly

a) Investors want their money

b) advisors are feeling that they have been “fooled” by FT and they want their pound of flesh, so what if their investors suffer

c) some people who do not have much at stake want a “legal process” to be set so that some less scrupulous fund houses do not misuse the winding-up process

d) some people want the consent of the unitholders to change the terms of the agreement – it is no longer an open-ended fund, so there is a breach, so that has to be set right.

e) some competitors may want the whole process to be delayed so that FT finds it difficult to make a come-back and difficult to hold on to its investors, vendors, and employees

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f) some funds waiting on the wings might want to buy the fund house – lock stock and barrel.

Why the funds already lying in the bank can’t be given to the unit-holders? I do not know.

If FT were to be prosecuted, how is this 500 crores lying in the bank help the court? or our intellectuals? or our ‘Journalists’ or…of course they get viewership, but other than that?

So here I am wondering what is the advantage of people going to court?

I am not as intelligent as some of the IFA who write, tweet, etc. or like other journalists…so will somebody elucidate what is the benefit of going to court?

Let me disclose I, my family, friends, relatives and clients have an exposure to FT and I have a vested interest in the money coming back early. In case of Ultra short bond fund, there is money lying in the bank account and earning 2% p.a. The lawyers will have a good time.

So about Rs. 950 crores is lying in the bank, and some investors have made sure that this cannot be distributed to the unit-holders. It also means that some mutual fund houses are very happy with this development.

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Karma catches up one day. It will.

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As a professional trainer, Subra trains a lot of people – corporate employees, promoters, non-finance managers, fund managers, entrepreneurs, life insurance agents, journalists, PR agencies, and anyone who wants to learn. His style is simple – He tells stories of real people, real experiences, and breaks down complicated topics into easy to understand lessons.
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