SC orders Rs 9,122 cr payment to investors in Franklin’s six shut schemes

The Supreme Court on Tuesday directed Franklin Templeton Mutual Fund to disburse Rs 9,122 crore to unitholders of its six shut debt schemes.

SBI Mutual Fund has been entrusted the responsibility of disbursing the amount.

The money has to be distributed to unitholders in 20 days and the parties are at liberty to move applications in case of difficulties arising out of the process.

The six schemes have received total cash flows of Rs 14,391 crore till January 29, 2021 from maturities, coupons and prepayments.

The total number of cash positive schemes stands at five. These schemes have Rs 9,770 crore cash available to return to unitholders, subject to fund running expenses. The balance Rs 4,621 crore has been used to repay borrowings and interest thereon of the six schemes.

Individually, Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund and Franklin India Short Term Income Plan have 65 per cent, 53 per cent, 41 per cent, 27 per cent and 11 per cent of their respective AUM in cash.

The asset manager had shut six debt schemes on April 23, citing redemption pressures and lack of liquidity in the debt market.

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