Franklin Templeton MF: SC Asks Rs9,122 Crore be Paid Within 20 Days to Unitholders moneylife.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneylife.in Daily Mail and Mail on Sunday newspapers.
SC asks Franklin Templeton to return money to unitholders from cash-positive schemes
Cash to be returned in 20 days. SBI Mutual Fund will distribute the money, instead of Franklin Templeton February 02, 2021 / 05:41 PM IST
Unitholders of the six wound-up schemes of Franklin Templeton Mutual Fund (FT MF) will get a part of their money back soon.
The Supreme Court (SC) on Wednesday directed cash-positive schemes to distribute the funds to unitholders. The funds should preferably be transferred to unitholders accounts in 20 days, as per sources. The final order of the SC is not yet made available.
The court said SBI Mutual Fund (SBI MF) can oversee the distribution of these funds, and not FT MF. Unitholders will receive the funds in proportion to the units held by them.
»SC Orders Disbursal of Rs 9,122 Crore to Unitholders of Franklin Templeton s 6 Mutual Fund Schemes
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SC Orders Disbursal of Rs 9,122 Crore to Unitholders of Franklin Templeton s 6 Mutual Fund Schemes
The Supreme Court of India. (Image: PTI)
The court also gave the parties liberty to move applications in case of any difficulty arising out of the process. The lawyer, representing Franklin Templeton Trusts Services Limited, told the bench that the company would render cooperation with SBI Mutual Fund.
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The Supreme Court on Tuesday ordered that Rs 9,122 crore be disbursed within three weeks to the unitholders of Franklin Templeton s six mutual fund schemes which are proposed to be wound up. A bench of Justices S A Nazeer and Sanjiv Khanna said that the disbursal of money would be done in proportion to unitholders interest in the assets. In the proceedings conducted through video conferencing, the bench entrusted State Bank of India (SBI) Mutual Fund to disb
Franklin Templeton Mutual Fund has said its six shut schemes have received Rs 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 April 23, 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 Rs 25,000 crore as assets under management (AUM). The six schemes have received total cash flows of Rs 14,391 crore till January 29, 2021, from maturities, coupons and prepayments since winding up, the fund house said in a statement.