Franklin Templeton gets ₹1,261 crore in six debt schemes

Suresh P Iyengar Mumbai | Updated on May 17, 2021

From sale of asset, maturities, part payments, pre-payments and coupons in first fortnight of May

The six suspended debt schemes of Franklin Templeton have received ₹1,261 crore from sale of asset, maturities, part payments, pre-payments and coupons in the first fortnight of this month.

The schemes have received ₹20,615 crore since they were suspended for trading on April 24, 2020. They have distributed ₹14,572 crore in three tranches to the unitholders, so far.

Franklin Templeton debt investors to get Rs 2,962 crore

As of May 15, the schemes have another ₹1,261 crore with Franklin Templeton Ultra Short Term Bond Fund having assets of ₹566 crore while short-term income plan and income opportunity funds have ₹372 crore and ₹112 crore.

Franklin Templeton India Dynamic Accrual and credit risk funds have ₹101 crore and ₹78 crore while Low Duration fund has ₹33 crore.

Speeding up monetisation

The six schemes had asset under management of about ₹25,000 crore as of April, 2020, when the fund house decided to wind up by suspending trading in all these debt schemes.

Six suspended debt schemes: Franklin Templeton investors vote for closure

Worried investors had moved the High Court in various States and it was consolidated for hearing at the Supreme Court which, in turn, directed the Karnataka High Court to pass a verdict in a time-bound manner.

Unhappy with the Karnataka High Court verdict, all the concerned parties moved the Supreme Court again. Keeping investor interest in mind, the apex court appointed SBI Funds Management to distribute the surplus funds to investors.

It was also assigned with the task of monetising the assets in the debt schemes through various modes, including prepayments and secondary market sales, to accelerate the monetisation process earlier than the dates mentioned in the maturity profile document.

Published on May 17, 2021

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