Franklin Templeton has said that the investors of its six shuttered schemes will get a payout of Rs 2,489 crore, starting from Monday. The next tranche of money will be distributed by the SBI Mutual Fund as directed by the Supreme Court. SBI MF has already distributed Rs 12,084 crore to investors, including Rs 2,962 crore in April.
“We are pleased to now inform you that SBI Funds Management Pvt Ltd (SBI MF) would be distributing the next tranche of Rs 2,488.75 crore to unitholders across all six schemes. The payment to all investors whose accounts are KYC compliant with all details available will be made during the week of May 3, 2021,” a Franklin Templeton MF spokesperson said on Sunday.
The amount to be paid to unitholders will be paid by extinguishing proportionate units at the net asset value dated April 30, this year, he further added.
SBI Mutual Fund will electronically transfer the money to all eligible unitholders. The investors with KYC-compliant accounts will receive money through online transfers, the fund house earlier said.
For those who are not eligible for an electronic payment, a cheque or demand draft will be issued by the mutual fund group. It should be sent to their registered address, SBI MF said. It must be noted that the distribution for the 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.
In April 2020, the Franklin Templeton MF shut its six debt mutual fund schemes, 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 estimated Rs 25,000 crore as assets under management (AUM).
The Supreme Court in March, 2021 accepted the standard operating procedure (SOP) finalized by SBI MF to monetise assets and distribute the proceeds to unitholders of the six debt schemes of Franklin Templeton Mutual Fund.