6 shut Franklin schemes have ~1,981 cr for distribution

The six shuttered debt schemes of Franklin Templeton MF have ~1,981.02 crore as cash available for distribution to their unitholders. The fund house had already returned ~21,080.34 crore, amounting to 84 per cent of assets under management (AUM) as on April 23, 2020, when it shut those schemes.

Industry sources said the cash surplus available will be given to investors over the next few days. The trustee of the fund house had decided to wind up six of its debt schemes after the debt markets became illiquid due to the severe impact of Covid.

Between February and July this year, Franklin Templeton MF had distributed cash in five tranches, amounting to ~21,080.34 crore.

An an order passed on June 7, Sebi had directed Franklin Templeton MF to disgorge

Between February and July this year, Franklin Templeton MF had distributed ~21,080.34 crore

~512 crore it had collected as investment management and advisory fees between June 2018 and April 2020. A penalty of ~5 crore ws also levied for “several irregularities” in the running of its six debt schemes that were wound up in April 2020. But later, the Securities Appellate Tribunal provided interim relief to Franklin by partly staying the order passed by Sebi.