Sebi extends deadline for Franklin MF audit

The Securities and Exchange Board of India (Sebi) has granted more time to auditor Chokshi & Chokshi, which is looking into the dealings of six schemes shut down by Franklin Templeton Mutual Fund (MF), said people with the knowledge of the development.

The chartered accountant and forensic audit firm was to complete the investigation by the first week of July. However, given the tedious nature of the probe, the auditor will be allowed to submit its finding by the end of July or first week of August, added a source.

“Initially, Sebi had given Chokshi & Chokshi 30 days. However, the scope of the probe is quite wide and Sebi has allowed more time,” said a person.

Franklin Templeton MF declined to comment on the issue. A month ago, Sebi tasked Chokshi & Chokshi to examine any regulatory violations or collusion between the fund house and investee companies or fund house and large investors to ensure all processes were allowed in fair and transparent manner.

Delay in submission of audit findings could potentially delay the e-voting process required to seek unitholders’ nod to wind up the schemes.

Initially, the e-voting process was scheduled to be held between June 9 and June 11. However, the process was delayed after certain investors approached various high courts (HCS) against the fund house.