In a major relief, investors in the six suspended debt schemes of Franklin Templeton can expect a payout of ₹2,600 crore in the fourth tranche, expected to start from Monday. The six schemes have received ₹1,378 crore in the fortnight ended May 31, taking the overall inflow in the month to ₹2,639 crore.

The fund house has already distributed ₹14,572 crore in three instalments. The six schemes had asset under management of ₹25,000 crore when they were suspended in April 2020 due to large scale redemption.

Between April 2020 and May, the six schemes under winding up have received ₹21,993 crore from maturities, pre-payments, sale and coupons. It has repaid debt of ₹4,476 crore availed to meet redemption before the schemes were suspended due to disruption in debt market caused by the Covid pandemic outbreak.

Franklin Templeton Short Term Income and Ultra Short Bond funds have the highest distributable cash of ₹966 crore and ₹617 crore. Credit Risk Fund and Income Opportunity funds have ₹530 crore and ₹258 crore while Dynamic Accrual and Low Duration funds have mopped up ₹205 crore and ₹66 crore for distribution. The inflows are from coupons and sale of assets held in the scheme by the Supreme Court-appointed SBI Funds Management.

SEBI verdict awaited

Meanwhile, the market regulator SEBI, which has already conducted forensic audit on Franklin Templeton, is expected to pronounce its judgement soon as directed by the Supreme Court.

Earlier, SEBI had issued show-cause notice to two large financial institutions and executives of the fund house regarding the ‘unusual withdrawals’ from the six debt schemes before it announced the suspension of redemption on April 23, 2020.

The forensic audit report of Chokshi and Chokshi LLP has revealed over ₹15,300 crore of withdrawal from the six debt schemes just a few weeks before they were suspended for redemption.

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