Franklin Templeton: P Chidambram urges Centre to act promptly, quickly to resolve issue
New Delhi/UNI: Former Finance Minister P Chidambaram, on Saturday said Franklin Templeton Mutual Fund’s decision to wind up six debt schemes is a matter of grave concern to the investors, mutual fund industry and the financial markets.
In a statement issued in early in the day, the senior Congress leader said that a similar situation arose in the first week of October 2008, during the global financial crisis, when mutual funds faced liquidity stress.
“Government immediately consulted RBI, SEBI, IBA, AMFI and others. An urgent meeting of the FSDC was convened and a solution was found by the end of the day. On the next morning, officers of RBI and SEBI met at 0800 hrs and RBI announced a 14-day special repo facility and allowed an additional 0.5 per cent of NDTL. The situation was resolved”, he recalled.
He further said that “fortunately, the markets will be closed today and tomorrow. I expect that the government will act promptly and resolve the situation quickly”.
The former finance minister’s statement came after Franklin Templeton, one of the oldest asset management company’s announcements to the closure of six funds.
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