SC orders Franklin Templeton to pay Rs 9,122 crore to unit holders – Times of India
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NEW DELHI: The Supreme Court on Tuesday directed Franklin Templeton Mutual Fund to pay Rs 9,122 crore among unitholders of six mutual fund schemes that were shut down by the company abruptly.
The apex court has asked the amount be disbursed among the unit holders in proportion to the respective interests in the assets of the scheme.
SBI Mutual Fund has been directed to carry out the exercise of disbursement, after a counsel for all parties agreed to this arrangement.
The top court added that the distribution of money to the unit holders should be completed within 20 days from Tuesday.
On April 23 last year, Franklin Templeton MF shut six debt mutual fund schemes on April 23, 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 assets under management (AUM).
However, the unitholders of the six schemes have already received Rs 14,391 crore from maturities, pre-payments and coupon payments since their closing down in April.
(With inputs from agencies)
The apex court has asked the amount be disbursed among the unit holders in proportion to the respective interests in the assets of the scheme.
SBI Mutual Fund has been directed to carry out the exercise of disbursement, after a counsel for all parties agreed to this arrangement.
The top court added that the distribution of money to the unit holders should be completed within 20 days from Tuesday.
On April 23 last year, Franklin Templeton MF shut six debt mutual fund schemes on April 23, 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 assets under management (AUM).
However, the unitholders of the six schemes have already received Rs 14,391 crore from maturities, pre-payments and coupon payments since their closing down in April.
(With inputs from agencies)
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