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The Supreme Court has dismissed the petition filed by distributors against the use of commissions for payment to investors of Franklin Templeton Mutual Fund.
Additionally, the top court has ordered payment of Rs. 684 crore to the unitholders of the wound-up Franklin Templeton schemes.
In April, the Supreme Court had restrained SBI Mutual Fund from making the next tranche of payment to investors after Foundation of Independent Financial Advisors (FIFA) filed a petition seeking distribution of accrued commission to MFDs and not to investors.
The commission, accrued between April 24 and March 17, amounted to Rs. 78 crore and was about to be transferred to investors on SEBI's directive. However, the payment got stayed due to the Supreme Court’s intervention.
Last year, the Supreme Court appointed SBI MF to oversee the winding up of the six schemes and transfer the funds to investors.
