The Supreme Court has asked Franklin Templeton Mutual Fund to distribute the recovered monies to unitholders of the six wound up schemes in proportion to their respective holdings in the scheme.
The apex court has appointed SBI Mutual Fund to oversee the distribution of monies to the unitholders.
The fund house has distributable surplus of Rs.9122 crore as on January 15, 2021.
In a communication sent to Cafemutual, the fund house said, “As previously stated, we went ahead with the difficult decision of winding up these schemes because of our firm belief that this was the right decision to preserve value for investors, as evidenced by the generation of cash in these schemes over the last 9 months. We believe the distribution of monies will provide unitholders with much needed liquidity and look forward to working with the Regulator and SBI Mutual Fund to distribute the cash within the period stipulated by the Court.”
The schemes that were closed were Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Income Opportunities Fund and Franklin India Short Term Income Plan.
