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Franklin Templeton Update @28th Sep 2020
There is some confusion amongst investors and media on the FIR lodged by EOW - Chennai against Franklin Templeton Employees and Trustees
I will try to answer some top Qs in this thread that I got on this
Hope it helps
(1/n)
There is some confusion amongst investors and media on the FIR lodged by EOW - Chennai against Franklin Templeton Employees and Trustees
I will try to answer some top Qs in this thread that I got on this
Hope it helps
(1/n)
Q1: There are some reports that AMFI has requested SEBI to intervene and stop this FIR
Ans:
SEBI has no powers to intervene in the FIR
An FIR once lodged, can only be quashed by a competent court
There are SC guidelines under which an FIR can be quashed by a Court
(2/n)
Ans:
SEBI has no powers to intervene in the FIR
An FIR once lodged, can only be quashed by a competent court
There are SC guidelines under which an FIR can be quashed by a Court
(2/n)
Q2: But FT has said no FIR is lodged? Is FT lying?
Ans: I have not seen any such statement where FT has denied that an FIR has been lodged.
At best, FT may have said that they have not got a copy of the FIR or they have still not been intimated.
(3/n)
Ans: I have not seen any such statement where FT has denied that an FIR has been lodged.
At best, FT may have said that they have not got a copy of the FIR or they have still not been intimated.
(3/n)
Q3: Is an FIR lodgment mean that FT is guilty?
Ans: No, FIR being booked only means that the EOW believes it should be investigated
FT can appeal against this in the Court by filing a fresh request
There is no locus standi for AMFI or SEBI to intervene in this process
(4/n)
Ans: No, FIR being booked only means that the EOW believes it should be investigated
FT can appeal against this in the Court by filing a fresh request
There is no locus standi for AMFI or SEBI to intervene in this process
(4/n)
Q4: Can Hon'ble Finance Minister have it stopped ?
Ans: Very theoretically,, even Finance Minister has no locus standi. Only a Court can quash an FIR
But obviously FinMin can "kind of" indicate their stand
Very unlikely event that FinMin will intervene now
(5/n)
Ans: Very theoretically,, even Finance Minister has no locus standi. Only a Court can quash an FIR
But obviously FinMin can "kind of" indicate their stand
Very unlikely event that FinMin will intervene now
(5/n)
Q5: Is EOW acting out of haste/improperly by filing an FIR?
Ans: This totally depends on what documents they have and why do they feel it is needs to be investigated.
Without looking at these documents or the FIR - one cannot say that EOW was wrong to file an FIR
(6/n)
Ans: This totally depends on what documents they have and why do they feel it is needs to be investigated.
Without looking at these documents or the FIR - one cannot say that EOW was wrong to file an FIR
(6/n)
Q6: One argument made is earlier investors got higher returns in FT? So investors cannot complain now
Ans: By this logic - no Ponzi scheme investor can ever complain. In a Ponzi scheme - initially all investors get high returns and then get trapped
Not that FT was Ponzi
(7/n)
Ans: By this logic - no Ponzi scheme investor can ever complain. In a Ponzi scheme - initially all investors get high returns and then get trapped
Not that FT was Ponzi
(7/n)
Q7: Another argument is that investors had seen the portfolios - they invested after seeing it
Ans: Yes investors had seen and have absorbed credit defaults also in FT portfolios
There was no premise to lock-in the money of all investors and nor was it told to investors
(8/n)
Ans: Yes investors had seen and have absorbed credit defaults also in FT portfolios
There was no premise to lock-in the money of all investors and nor was it told to investors
(8/n)
Q8: Why are investors crying foul?
1. Nobody expected money will be blocked without a time-frame
2. There were instruments in the portfolio like Essel etc, where FT could have recovered more money of investors. They could not and hence investors have lost faith
(9/n)
1. Nobody expected money will be blocked without a time-frame
2. There were instruments in the portfolio like Essel etc, where FT could have recovered more money of investors. They could not and hence investors have lost faith
(9/n)
Q10: What are next steps?
Ans:
Pls wait for the Karnataka High Court Judgement - expected in the next 10 days or so
Investor's rights and monies should be protected at all costs - if financial stability has to be maintained.
*** End ***
(10/10)
Ans:
Pls wait for the Karnataka High Court Judgement - expected in the next 10 days or so
Investor's rights and monies should be protected at all costs - if financial stability has to be maintained.
*** End ***
(10/10)
