FT SAYS IT HAS RETURNED ₹17,777 CR TO INVESTORS OF SHUT SCHEMES

NEW DELHI: Franklin Templeton Mutual Fund (MF) on Thursday said it has returned ₹17,777 crore to unit holders of six shuttered debt schemes till June 15.

This amounts to 71% of assets under management (AUM) as on April 23, 2020, when the fund house shut its six debt mutual fund schemes citing redemption pressures and lack of liquidity in the bond market.

Further, cash to the tune of ₹580 crore was available for distribution as on June 15, Franklin Templeton MF said in a statement.

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 schemes have returned ₹17,777.59 crore to unitholders amounting to 71% of AUM as on April 23, 2020,” they said.

Under the first disbursement in February, investors received ₹9,122 crore, while ₹2,962 crore were paid to investors during the week of April 12, ₹2,489 crore in the week of May 3, and in the latest disbursement during the week of June 5, investors were paid ₹3,205 crore.

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

SBI MF has been appointed as the liquidator for the schemes under winding up by the Supreme Court. Last week, Sebi barred Franklin Templeton from launching any new debt scheme for two years and imposed a penalty of ₹5 crore for violating regulatory norms in the case of winding up of six debt schemes in 2020.