MF Trustees must get unit-holders’ consent before winding up a scheme: SC

Franklin Templeton Trustee Services Private Limited and Another Vs Amruta Garg and Others (Supreme Court of India) Prior-consent from the unitholders if necessary even when the trustees ‘decide to wind up’ a scheme under Regulation 39(2)(a), would inevitably delay the publication of public notices as envisaged by Regulation 39(3). Therefore the cease and freeze legal effect of Regulation 40 would get postponed resulting in chaos and confusion, as business activities such as buying and redemption of units etc., would continue despite the trustees having taken the decision to wind up the sch...