Court-appointed liquidator SBI Funds Management Pvt Ltd (SBI MF) will distribute the sixth tranche of Rs 2,918.50 crore to Franklin Templeton Mutual Fund unitholders across all six schemes.
Post this pay out, the schemes have returned Rs 23,998.84 crore to unitholders amounting to 95.18 percent of the assets under management (AUM) as on April 23, 2020, Franklin Templeton said in a statement.
“The payment to all investors whose accounts are KYC compliant with all details available will commence from 1 September 2021,” it added. A total Rs 21,080.34 crore have already been distributed across six schemes under winding up.
The payment will be made electronically to all eligible unitholders by SBIMF. In case the unitholders’ bank account is not eligible for an electronic payment, a cheque or demand draft will be issued and sent to their registered address by SBI MF. Further, unitholders whose distributable amounts are less than Re.1 will not receive any payments.
In March, the Supreme Court accepted the standard operating procedure (SOP) finalised by SBI MF to monetise assets and distribute the proceeds to unitholders of the six debt schemes of Franklin Templeton Mutual Fund.
Franklin Templeton Mutual Fund shut its six debt mutual fund schemes on April 23, 2020, citing redemption pressures and lack of liquidity in the bond market. The schemes — Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund, and Franklin India Income Opportunities Fund — together had an estimated Rs 25,000 crore as AUM.
[Inputs from PTI]