Two debt schemes of Franklin Templeton Mutual Fund have faced default from Reliance Broadcast, an Anil Ambani group firm, after it was unable to meet maturity and interest payments due on its non-convertible debentures (NCDs).
Franklin Corporate Debt Fund and Franklin Short Term Income Fund had exposure to these NCDs. Of these, the latter is being wound up by Franklin. In a note to investors, the fund house said it was in the process of initiating appropriate enforcement action to recover dues from the issuer and other connected parties.
