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Franklin accumulates ₹1,111 crore more from sale of six debt scheme assets

Our Bureau Mumbai | Updated on August 11, 2021

Sanjay Sapre, President, Franklin Templeton Asset Management.

SBI Funds will disburse later this month

Franklin Templeton, which is in the eye of storm for abruptly closing six of its debt schemes, accumulated ₹1,111 crore from the sale of assets and income from investments as of July-end. The amount may be disbursed in the third week of this month by SBI Funds Management, the official liquidator appointed by the Supreme Court.

The six debt funds had assets under management (AUM) of about ₹25,000 crore when they were abruptly closed last April. So far, the suspended funds have disbursed ₹21,080 crore to investors, about 84 per cent of the AUM.

The average net asset value (NAV) at which five tranches have been disbursed for each of the six schemes is higher than the NAV as of April 23, said Sanjay Sapre, President, Franklin Templeton Asset Management.

“We believe this supports the decision made by the trustee in consultation with the AMC and its investment management team to wind up the six schemes in order to preserve value for our unit holders,” he added

With respect to the SEBI order, he said the Securities Appellate Tribunal (SAT) has issued orders staying enforcement of SEBI’s orders conditioned on deposit of a portion of the monetary penalties. Further, SEBI had filed an appeal before the Supreme Court against the interim order issued by SAT.

On July 26, the SC disposed of the appeal after recording the fund house statement that it will not launch any new debt scheme till the disposal of the appeal by the SAT, Sapre said. The Supreme Court also upheld the reduced penalty by SAT.

Published on August 11, 2021

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