It is the right of every citizen to go to the shelter of law in the matter of peace or suffering and at times a spontaneous response. But taking many matters to the law complicates it before it is resolved. The case of taking the Franklin Templeton case to court also appears to be one of them. The way this case has been taken to court, it is clear that some investors have no confidence in the regulators. One effect of this will also be that the investors, who were seen settling the case out of court and without any legal trouble, will also have to wait longer. Perhaps some part of this whole system would want to do the same with the intention of imposing its fault on the other.
BSE: Market cap of eight companies increased in the business week
The liquidity crisis in India's debt fund has become complicated. This has happened because some investors have gone to court over the matter. It is the right of any Indian to take help of law if he wants. In this case, it may not be in the interest of investors to do so. We look back and see why this situation arose. Franklin Templeton closed six of its debt funds in the last week of April. In this way, the amount of about 30,000 crores of investors has been frozen. These include the Franklin India Low Duration Fund, the Franklin India Ultra Short Bond Fund, the Franklin India Short Term Income Plan, the Franklin India Credit Risk Fund, the Franklin India Dynamic Acular Fund and the Franklin India Income Opportunities Fund.
Imports from China may be banned soon
It is also unexpected in the history of open-ended funds in India. Franklin took this step because she found that the bond market had freeze and she could not sell the bonds purchased by these funds, while the request to redeem her investment from the fund-buyers was on the head. The plan of the fund house is that it will stop cashing on the demand of investors, as open-ended funds usually do. But when she will be able to sell the bonds or the maturity of the bonds will end, she will continue to redeem the amount. It will be given to investors even after getting interest payment on the bonds.
Shine in India's foreign exchange reserves, reached 500 billion dollar for the second time in a row