Franklin Templeton case: Karnataka HC says consent of unit holders needed

The Karnataka High Court on Saturday said the Franklin Templeton trustees should have taken the consent of unit holders before giving the nod for winding down of six debt schemes.

The court has restrained the trustees from taking any further steps till the consent of unit holders via simple majority is obtained. It said the duties of trustees are in the nature of public duties. "If Trustees violate SEBI Act or the MF Regulations, a High Court can issue Writ of Mandamus under Article 226 to the Trustees," the court observed, adding that trustees had an obligation to provide the