1 min read.Updated: 02 Feb 2021, 06:27 PM IST Edited By J. Jagannath
The apex court has directed SBI Mutual Fund to carry out the exercise of disbursement
Franklin Templeton MF shut six debt mutual fund schemes on 23 Apr, 2020 citing redemption pressures and lack of liquidity in the bond market
The Supreme Court on Tuesday has directed Franklin Templeton to distribute ₹9,122 crore among unitholders of the six schemes that were shut by the mutual fund house in April 2020. The apex court has directed that distribution of funds to be undertaken by SBI Mutual Fund and that the distribution needs to be completed within 20 days
The apex court directed that unitholders should be repaid in proportion to their respective share in assets of the scheme.
Franklin Templeton Mutual Fund has said its six shut schemes have received ₹14,391 crore from maturities, pre-payments and coupon payments since their closing down in April.
Franklin Templeton MF shut six debt mutual fund schemes on 23 April, 2020 citing redemption pressures and lack of liquidity in the bond market.
The schemes -- Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund, and Franklin India Income Opportunities Fund -- together had an estimated ₹25,000 crore as assets under management (AUM).
"The six schemes have received total cash flows of ₹14,391 crore till January 29, 2021, from maturities, coupons and prepayments since winding up," the fund house said in a statement.
In the latest fortnight (January 16-29), these schemes received ₹602 crore, of which ₹350 crore was as pre-payments, it added.
Individually, Franklin India Ultra Short Bond Fund, Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund and Franklin India Short Term Income Plan have 65 per cent, 53 per cent, 41 per cent, 27 per cent and 11 per cent of their AUM in cash, respectively.