Franklin Templeton to give Rs 88 crore to unitholders of shut debt MF schemes

This disbursal will bring the total distribution from the scheme to 99.32 percent of the AUM as on 23 April 2020, the day the schemes were shut. In Franklin India Credit Risk Fund, the total cash available as on 17 February 2023, is 25.60, while the AUM stands at Rs 160 crore. The fund will disburse 16 percent of the total AUM this week taking the total distribution to 109.34 percent.

After this tranche, the total amount distributed in the 6 shut schemes will stand at Rs 26,931.27 crores amounting to 106.81 percent of the AUM as on April 23, 2020.

"Five out of six schemes have returned over 100 percent of the AUM at the time of winding up. The total amount disbursed so far ranges between 99.32 percent and 112.46 percent of the respective AUM of the six schemes as of April 23, 2020. Four out of six schemes have liquidated all performing assets and extinguished all units. At the time of each distribution, the NAV of each scheme was higher than on April 23, 2020," a communication from Franklin Templeton Mutual Fund noted.

SBI Fund Management will make the payments electronically or via cheque, demand draft to all eligible unit holders. FTMF has said that the payments till date, any recoveries or receipts from securities which are currently valued at zero or have matured but defaulted on their repayment obligation, shall be paid out to investors as and when such amounts are recovered.

Franklin Templeton had shut its six debt mutual fund schemes in April, 2020 following a liquidity crisis in the debt market after the outbreak of Covid-19 pandemic. After a series of cases in lower courts in different parts of India, the Supreme Court of India appointed SBI MF as the legal liquidator in the matter. ​