Mumbai, Apr 24 (PTI) Terming the shut down of six debt schemes by Franklin Templeton Mutual Fund (FTMF) as an extreme step that has created panic, an umbrella body of brokers on Friday sought markets regulator Sebi and the Ministry of Finance's intervention to protect investor interest.
FTMF stunned all by deciding to shutter operations of six schemes with assets under management of more than Rs 25,000 crore late Thursday evening, citing redemption pressures and market volatilities in wake of the COVID-19 pandemic. The fund house has said that capital markets regulator Sebi was informed in advance about the decision, which has been taken to protect investor wealth.
'Such an extreme step by FTMF has created panic among their investors as well as mutual fund investors in other debt schemes across asset management companies,' the Association of National Exchange Members of India (ANMI) said.
The ANMI wrote to capital markets watchdog Sebi and the Ministry of Finance, seeking their intervention to 'protect the hard earned savings' of lakhs of investors.
The body pitched for the formation of an expert committee of mutual fund executives to 'determine the precise problem in FTMF schemes'.
It said the confidence of people in debt mutual funds is at a risk and an event like this should not lead to an erosion of trust in a Rs 24 lakh crore industry. PTI AA MR