Franklin Templeton Mutual Fund unitholders will receive about Rs 2,918.50 crore from the liquidator SBI Funds Management Pvt Ltd (SBI MF) delegated by the top court. This amount will be equally distributed to the six mentioned schemes as per the sixth tranche of SBI MF.
Commenting on the same, Franklin Templeton said in an official statement, “Post this pay out, the schemes have returned Rs 23,998.84 crore to unitholders amounting to 95.18 percent of the assets under management (AUM) as on April 23, 2020”.
The payment is transferred through the online e-mode to all the unitholders qualified by SBI MF. However, in cases when the unitholders’ bank account is not fit to carry forward an electronic payment then either a cheque or demand draft will be issued by SBI MF and dispatched to their registered address. There also remains an exception that, if the respective unitholders whose distributable amount ranges less than Re.1 he/she will not be awarded with payment.
The Supreme Court of India admitted SBI MF’s standard operating procedure (SOP) that monetise assets and is also responsible for distribution of proceeds to the qualified unitholders of the six debt schemes by Franklin Templeton Mutual Fund.
The schemes published by the company were: 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. The company had estimated an AUM of around Rs 25,000 crore.