Stocks

Franklin Templeton to pay ₹2,918 crore to investors in six suspended debt schemes

Suresh P Iyengar Mumbai | Updated on August 30, 2021

SBI Funds Management, the Supreme Court-appointed official liquidator , will start distributing the money from September 1

Six suspended debt schemes of Franklin Templeton will distribute ₹2,918 crore to investors received from sale of assets and coupons.

SBI Funds Management, the Supreme Court-appointed official liquidator of the schemes, will start distributing the money from September 1, said the fund house in a statement to its investors.

The schemes, which were abruptly suspended last April, has so far returned ₹21,080 crore. Including the last tranche of payment, the fund house has returned 95 per cent of the asset under management of about ₹26,000 crore when the schemes were suspended.

Investors in Franklin Templeton Short Term Income Plan and Income Opportunity Fund will get the highest amount — ₹950 crore and ₹567 crore while Dynamic Accrual and Ultra Short Bond will pay ₹433 crore and ₹414 crore, respectively. This apart, Credit Risk and Low Duration funds will distribute ₹346 crore and ₹208 crore.

Interestingly, the low duration fund has more than repaid investors completely and has asset of ₹300 crore for monetisation. Similarly, Ultra Short Bond Fund has returned the entire AUM as of last April and has asset of ₹1,215 crore while the Income Opportunity, Credit Risk and Dynamic Accrual funds have repaid 94 per cent of assets and have ₹800 crore, ₹966 crore and ₹747 crore for monetisation.

Having returned 84 per cent of dues, Short Term Income Plan has the highest asset of ₹2,047 crore for sale, as of August 27.

Published on August 29, 2021

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