Read more about SC nod for SBI MF plan to distribute Rs 9,122 cr to Franklin unitholders on Business Standard. Distribution mechanism was framed in consultation with Sebi and Franklin Templeton MF
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The case has been posted for hearing on February 17 to consider other aspects of the appeal
The Supreme Court has given its approval to the proposal submitted by SBI Mutual Fund to distribute ₹9,122 crore to Franklin Templeton investors. SBI MF had filed its distribution mechanism in consultation with the SEBI and Franklin Templeton Mutual Fund (FTMF). The case has now been posted for hearing on February 17 to consider other aspects of the appeal.
The apex court has directed the disbursal of cash as it was lying ideal with the fund house, but the hearing with regard to FTMF’s proposal over winding up of the debt schemes will continue.
Maulik Madhu
BL Research Bureau |
Updated on
February 05, 2021
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The AMC should distribute ₹9,122 crore to affected investors. But investors in Franklin India Income Opportunities Fund will not receive any part of this amount.
Following the sudden closure of six debt mutual fund schemes by Franklin Templeton Mutual Fund on April 23, 2020, all redemptions from the scheme were halted. Investors were left wondering when their money invested in these schemes would be returned.
On February 2, the Supreme Court directed Franklin Templeton MF to distribute ₹9,122 crore to the unitholders of the wound up schemes within 20 days. With this, the affected investors are for the first time, set to receive a part of their money blocked in these schemes since April 2020. SBI MF will handle the disbursement.
SC orders disbursal of Rs 9K cr to unitholders of Franklin Templeton s 6 MF schemes PTI
Updated Feb 3, 2021, 8:54 am IST
The bench granted liberty to the litigating parties to approach the court in case of any difficulty in the disbursal of money
Franklin Templeton Investments Logo (Wikipedia)
New Delhi: The Supreme Court 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.
Synopsis
The Supreme Court has directed Franklin Templeton to distribute Rs 9,122 crore to unitholders of the six schemes that were shut by the mutual fund house in April.
The Supreme Court has directed Franklin Templeton to distribute Rs 9,122 crore to unitholders of the six schemes that were shut by the mutual fund house in April. The apex court has directed SBI Mutual Fund to carry out the exercise of disbursement.
Supreme Court bench of Justices Abdul Nazeer and Sanjiv Khanna have directed the fund house to distribute the money to unitholders within twenty days from today. We are pleased that, as requested by us, and in the best interests of Unitholders, the Hon’ble Supreme Court has directed the distribution of INR 9,122 crore (distributable surplus as of 15 January 2021) to the respective unitholders in proportion to their holdings in the schemes under winding up, subject to fund running expenses. As previously stated, we went ahead with the difficult decision of windin