Six suspended debt schemes: Franklin Templeton to soon disburse ₹684 cr

BL Mumbai Bureau | Updated on: Aug 05, 2022

No commission for distributors after suspension of schemes, rules SC

Franklin Templeton India will soon distribute ₹684 crore to investors in six suspended debt schemes.

The Supreme Court on Wednesday permitted the Court-appointed liquidator SBI Funds Managers to distribute ₹684 crore in the six schemes to the unit holders. Further to the communication received from the liquidator, the cash available in the six schemes (subject to expenses) will be distributed in due course, said Franklin Templeton in a statement to investors.

The total amount distributed in the six schemes would be 106 per cent of the AUM as on April 23, 2020 when the funds were suspended for the first time due to liquidity crisis in debt markets caused by the Covid pandemic.

Five out of six schemes have returned over 100 per cent of the AUM at the time of winding up.

Four schemes have liquidated all performing assets.

Total amount disbursed would range between 97 per cent and 112 per cent of the respective AUM values of the six schemes as of April 23, 2020.

At the time of each distribution, the NAV of each scheme has been higher than on April 23, 2020.

“We continue to make all efforts for recovery of proceeds from issuers who have defaulted on their repayment obligations,” said Franklin Templeton.

The Apex Court decided that the distribution commission is not payable from the schemes under winding-up, after announcement of winding-up decision by the Trustees.

“We are awaiting copy of the judgement. We remain committed to serving the long-term interests of our investors and distribution partners in compliance with applicable regulations and the order issued by the Supreme Court,” it added.

Published on August 05, 2022
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