SBI Mutual Fund to distribute Rs 9,122 crore to unitholders of Franklin's 6 shut schemes

The Supreme Court on Friday upheld the validity of e-voting process for winding up of six mutual fund schemes of Franklin Templeton, and said disbursal of funds to unitholders will continue. The top court has also appointed SBI Mutual Fund to distribute the funds to unit holders of the schemes.

"We are pleased to inform that the Hon'ble Supreme Court, in its order dated 12 February 2021 has upheld the results of the e-voting u/r 18(15)(c) held in December 2020 and confirmed the winding up of 6 schemes. The Hon'ble Supreme Court has also appointed SBI Funds Management Pvt. Ltd. as the authorized person under regulation 41 to take next steps on monetisation. Franklin Templeton Mutual Fund will provide all assistance and cooperation to SBI Funds Management to monetise the assets. The decision of the Hon'ble Supreme Court to dispense with voting u/r 41 reduces any potential delay in commencing active monetisation of assets. We are thankful to our unitholders for voting overwhelmingly in favour of the orderly winding up in all 6 schemes. We deeply appreciate the continued patience and support of our investors and partners during these challenging time," says Franklin Templeton spokesperson.

ALSO READ: SC orders Franklin Templeton to pay Rs 9,122 crore to 6 debt schemes' unitholders

The Supreme Court on February 2 ordered that Rs 9,122 crore be disbursed within three weeks to the unit holders of Franklin Templeton's six mutual fund schemes which are proposed to be wound up. The five cash positive schemes include Franklin India Ultra Short Bond Fund, which has an available cash of Rs 5,075 crore, Franklin India Low Duration Fund has Rs 1,625 crore, Franklin India Short Term Income Fund (Rs 469 crore), Fanklin India Credit Risk Fund (Rs 926 crore) and Franklin India Dynamic Accrual Fund has Rs 1,025 crore.

In a letter to its investors, Sanjay Sapre, President, Franklin Templeton Asset Management mentioned a detailed process of disbursal of money. He said, "The disbursal of money would be done in proportion to unit holders' interest in the assets." The letter mentioned the following points:

ALSO READ: Franklin Templeton gets unitholders' nod to wind up six debt schemes

• Payment will be made by extinguishing proportionate units at the prevailing NAV on the date of processing.
• Payment to all investors whose accounts are KYC compliant with all details available will be made during the week of February 15, 2021.
• Please click here to check the status of your account in the schemes under winding up.
• Please note that the distribution for unitholders, whose PAN/KYC, FATCA/UBO, Minor through guardian or Transmission details / documentation are not available/invalid, will be made after completion of the regulatory/ compliance requirements.
• Payment will be made by SBI from the bank accounts (one per scheme) opened by them for this purpose.
• Payment will be made electronically to all eligible customers.
• In case your bank account is not eligible for an electronic payment, a Demand Draft/Cheque will be issued and sent to your registered address.
• You will receive an account statement from Franklin Templeton showing the details of units extinguished and payment made.
• Capital Gains statements will also be made available. You may request the same via our website, call centre or from your registered email ID.
• Franklin Templeton will be responsible for deduction of TDS and issue of TDS certificates for NRI investors.
• Franklin Templeton will assist with query resolution, unclaimed payments or any other payment issues.

Franklin Templeton Mutual Fund closed the above mentioned six debt mutual fund schemes on April 23, 2020 citing redemption pressure and lack of liquidity in the bond market.

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