The Supreme Court has ordered that Franklin Templeton should return the money to investors of the 6 fixed income schemes that have been closed within 20 days. The apex court has given the responsibility of monitoring the fund transfer to the unitholders to SBI Mutual Funds.
new Delhi. There is good news for the unitholders of the 6 fixed income schemes of Franklin Templeton closed. They will soon get some money for investments made in cash-positive schemes. The Supreme Court has ordered Franklin Templeton to return the money to the unitholders within 20 days. However, the final order of the Supreme Court has not been available. According to the information, the Supreme Court has entrusted the responsibility of monitoring the fund transfer to SBI Mutual Funds (SBI Mutual Funds). Franklin Templeton cannot interfere in this.
Funds will be transferred in proportion to the units
Funds will be transferred to the unitholders in proportion to the units invested. However, it is not yet clear whether SBI Mutual Funds have been allowed to sell the holdings of these 6 closed schemes. Please tell that in this case, the unit holders of Ahmedabad had filed a petition in the Supreme Court. The Supreme Court, after hearing the petition, has ruled to return the money to the unitholders. On the proposal to discontinue Franklin Templeton’s schemes, the Supreme Court had directed e-voting. In this, the unitholders voted in favor of discontinuing these mutual fund schemes.
5 out of 6 schemes at this time
Franklin Templeton said that since its 6 schemes closed in April 2020, Rs 13,789 crore has been received as maturities, pre-payments and coupon payments. Five of these schemes are now cash positive. These include Rs 9,190 cash till January 15, 2021. 63% of the assets of the closing Franklin India Ultra Short Bond Fund are in cash. At the same time, 50 percent of the assets of Low Duration Fund, 41 percent of Dynamic Acquire Fund, 26 percent of Credit Risk Fund and 9 percent of Franklin India Short Term Income Plan are in cash. Explain that the mutual fund company closed these schemes on April 23, 2020 due to reduced liquidity in the bond market and redemption pressure.
