Thread by @barandbench

Supreme Court bench led by Justice Abdul Nazeer hears plea by Franklin Templeton Trustee Services Pvt Ltd challenging a Karnataka HC order which restrained winding up of six of its debt schemes without obtaining the consent of its investors by a simple majority
#SupremeCourt

Senior Adv Meenakshi Arora appears for small investors: SEBI does not have a clear policy for the small investors ... It is being said we will benefit but how no one has laid down.

Justice Sanjiv Khanna: This has been dealt in the impugned order

Senior Adv Arora: How does a unit holder participate without making an informed decision?

SC: we have heard you but we are not accepting this

Senior Adv Shyam Divan appears for Chennai Financial Markets and Financial Accountability: notice needs to be issued.

Advocate: Franklin has decided to have only e voting. They must have give an option of physical or postal voting as well.

(Ringtone of a lawyer interrupts)

SC: that was quite something!

SC: We will ask @SEBI_India to submit their final report

Adv: If Franklin is held guilty of making bad investments they should be made liable to pay the differential amount

SC: We will consider it

Senior Adv Ravindra Shrivastava: Now when meeting is taking place it is to be done by the trustees.HC has said a lot of things in this regard. Some independent authority must he appointed to over see the unit holders meeting. Some person or SEBI be appointed to oversee it

Shrivastava: HC had said that a retired HC judge can be appointed to oversee

Justice Khanna: We will place this to SEBI

Senior Adv Abhishek Manu Singhvi: Let SEBI have an observer in the meeting. Senior Adv Meenakshi Arora etc is creating panic. SEBI is a statutory body and such aspersions cannot be cast on the body. It sends a precise message that they want to send across

Senior Adv Arvind Datar: SEBI does not have the expertise to oversee electronic voting

Senior Adv Abhishek Manu Singhvi: surely a retired Judge does not have more expertise than @SEBI_India !

Justice Sanjiv Khanna: Because person who conducts voting may be located at different places and a Judge may be located somewhere else. E voting needs to be certified with record. Hence that's a problem in appointing a retired Judge.

Supreme Court continues its previous order of stay on redemption of unit holders. SC, however, asks SEBI to appoint an observer for e-voting in last week of Dec.

Next hearing in January 3rd week.

#SupremeCourt

Franklin Templeton Debt Schemes: Supreme Court asks SEBI to appoint observer for e-voting process; stay on redemptions to continue

#franklintempleton #SupremeCourt @SEBI_India

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