From September 1, according to a note issued by the fund house to mutual fund distributors, Franklin Templeton Mutual Fund will distribute ₹2,918.5 crores to unitholders of six debt mutual fund schemes.₹23,998.84 crores will return to investors with this scheme or 96.18% of the net asset value of the six schemes that were wound up on 23 April 2020.
In line with the direction of the Supreme Court SBI Funds Management Pvt. Ltd is overseeing the liquidation of the schemes and the distribution of their proceeds. A proportionate number of units get extinguished, once the money is paid.
By Franklin Templeton Mutual Fund, the six debt mutual funds were wound up following heavy outflows. The winding-up process was challenged by some investors and looked for a vote on this. The apex court made an official decision that such a vote is required, and accordingly, agreement of unitholders was sought in December 2020 and granted. By the Supreme Court SBI Funds Management Pvt. Ltd was placed to be in charge of the winding-up process.
Penalties on Franklin Templeton Mutual Fund and some of its directors were imposed by The Securities and Exchange Board of India (Sebi) and were not allowed to launch new debt mutual fund schemes for two years.
different levels of repayment have been received from Investors in the six different schemes. Including the upcoming September 2021 payout, Franklin India Low Duration Fund would have received 107.86%. However, would have received 84.43%, in the Fraklin India Short Term Income plan.
