SC orders Rs 9,122 cr payment to investors in Franklin’s six shut schemes

The Supreme Court docket on Tuesday directed Franklin Templeton Mutual Fund to disburse Rs 9,122 crore to unitholders of its 6 shut debt schemes.

SBI Mutual Fund has been entrusted the duty of disbursing the amount.

The dollars has to be distributed to unitholders in twenty times and the functions are at liberty to shift applications in scenario of complications arising out of the procedure.

The 6 schemes have received total cash flows of Rs fourteen,391 crore till January 29, 2021 from maturities, discount codes and prepayments.

The total variety of cash optimistic schemes stands at five. These schemes have Rs 9,770 crore cash out there to return to unitholders, subject to fund working expenses. The balance Rs 4,621 crore has been utilized to repay borrowings and curiosity thereon of the 6 schemes.

Individually, Franklin India Lower Duration Fund, Franklin India Extremely Shorter Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit score Possibility Fund and Franklin India Shorter Phrase Money Approach have 65 per cent, 53 per cent, 41 per cent, 27 per cent and 11 per cent of their respective AUM in cash.

The asset manager experienced shut 6 debt schemes on April 23, citing redemption pressures and deficiency of liquidity in the debt marketplace.

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