Franklin Templeton Unitholders To Get Rs 2,962 Cr In Second Tranche

SBI Funds Management (SBI MF) will distribute the next tranche of Rs 2,962 crore to unitholders of Franklin Templeton Mutual Fund's six shuttered schemes during the coming week.

SBI MF has already distributed Rs 9,122 crore to investors as directed by the Supreme Court earlier.

"SBI MF would be distributing the next tranche of Rs 2,962 crore to unitholders across all six schemes.

"The payment to all investors whose accounts are KYC compliant with all details available will be made during the week of April 12, 2021," a Franklin Templeton MF spokesperson said on Sunday.

The amount to be paid to unitholders will be paid by extinguishing proportionate units at the net asset value dated April 9, he added.

The payment will be made electronically to all eligible unitholders by SBI MF, which has been appointed as the liquidator for the schemes under winding up by the Supreme Court.

In case the unitholders' bank account is not eligible for an electronic payment, a cheque or demand draft will be issued and sent to their registered address by SBI MF.

In March, the Supreme Court accepted the standard operating procedure (SOP) finalised by SBI MF to monetise assets and distribute the proceeds to unitholders of the six debt schemes of Franklin Templeton Mutual Fund.

Franklin Templeton MF shut its six debt mutual fund schemes in April 2020 citing redemption pressures and lack of liquidity in the bond market.

The schemes 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. They together had an estimated Rs 25,000 crore as assets under management (AUM).

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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