Home / Companies / News /  Franklin Templeton case: Supreme Court orders next round of payment of 684 cr
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The Supreme Court has ordered the distribution of the next round of payment of 684 crore to the unitholders of the wound-up Franklin Templeton schemes.

This payment to investors includes the brokerage (distributor’s commission on regular plans) accrued on the six schemes from the time of wound-up till the date the liquidator – SBI Mutual Fund - took over, as per the fund house.

The court, in its recent order, dismissed an application that the commission accrued has to be given to distributors and not investors. The distributor’s commission on regular plans accrued under these six schemes from the time of wound-up till 17 March 2021, when the SBI Mutual Fund took over as liquidator, was 78 crore.

In April 2020, Franklin Templeton Mutual Fund announced the winding of six debt schemes-- Franklin India Low Duration, Franklin India Dynamic Accrual, Franklin India Credit Risk, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.

According to the update released by Franklin Templeton Mutual Fund, the total amount disbursed would range between 97% and 112% of the respective AUM values of the six schemes as of April 23, 2020, the day on which the winding up of schemes was announced. It also mentioned that 4 out of 6 schemes have liquidated all performing assets.

Regarding the recovery from the side pockets created in these funds to hold the defaulting/suspecting debt, the fund house stated, “we continue to make all efforts for recovery of proceeds from issuers who have defaulted on their repayment obligations."

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