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The Supreme Court on December 3, 2020 issued an interim order allowing the Trustee of Franklin Templeton to seek consent of the unitholders for the winding up of the six schemes. (Photo: Mint)
The Supreme Court on December 3, 2020 issued an interim order allowing the Trustee of Franklin Templeton to seek consent of the unitholders for the winding up of the six schemes. (Photo: Mint)

Franklin MF's six schemes under winding up receive 13,120 crore till Dec 31

The unitholders consent vote took place from December 26 to December 28, 2020 followed by the Unitholders meet via video conference on December 29, 2020.

It has been a little over eight months since the orderly winding up of the six schemes of Franklin Templeton Mutual Fund has started. The Supreme Court on December 3, 2020 issued an interim order allowing the Trustee of Franklin Templeton to seek consent of the unitholders for the winding up of the six schemes. Supreme court in its interim order on December 9, 2020, had directed SEBI to appoint an observer to oversee the voting exercise and the electronic unitholder meet.

The unitholders consent vote took place from December 26 to December 28, 2020 followed by the Unitholders meet via video conference on December 29, 2020.

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The AMC will submit the results of the e-voting along with the report of the observer appointed by SEBI ,to the Supreme court in a sealed envelope, wrote Sanjay Sapre, President, Franklin Templeton Asset Management (India), in a letter to the investors.

The next hearing is expected to be held in the third week of January 2021, says the letter. "We will update you on next steps related to the winding up post this hearing."

From April 24, 2020 to December 31, 2020, the six schemes under winding up have received 13,120 crore from maturities, pre-payments, and coupons. In the month of December 2020, the schemes mobilizedRs 1,543 crore.

Franklin India Short Term Income Plan turned cash positive taking the total number of cash positive schemes to five. These schemes have 8,527 crore available to return to Unitholders, subject to fund running expenses.

The inflows received across 6 schemes is nearly 41% higher than anticipated in the maturity profile published for April 23, 2020.

The borrowing level in Franklin India Income Opportunities fund, the only fund with outstanding borrowing, has steadily come down from 37.55% on April 24, 2020 to 6% at the end of December 2020.

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