Franklin Templeton Mutual Fund will distribute Rs 2,918.50 crore to the unit holders of the six shut schemes starting September 1. Post this payout, the total amount returned to the unitholders under the shut schemes would be Rs 23,998.84 crore, amounting to 95.18 per cent of the assets under management as on April 23, 2020, said the Franklin Templeton spokesperson. So far, Rs 21,080.34 crore has been distributed across six schemes under winding up.
"SBI Funds Management Pvt. Ltd. (SBI MF) would be distributing the next tranche of INR 2918.50 crore to unitholders across all six schemes. As advised by the court appointed liquidator (SBI MF), the payment to all investors whose accounts are KYC compliant with all details available will commence from 1 September 2021," the spokesperson said.
Cash available in the scheme 'Franklin India Short Term Income Plan (FISTIP)' as of August 27 was Rs 950 crore and that in Franklin India Income Opportunities Fund (FIIOF) was Rs 567.25 crore.
Earlier in July, the Supreme Court had recorded that Franklin Templeton Asset Management India Pvt Ltd will not launch any new debt scheme till the disposal of its pending appeal before Securities Appellate Tribunal (SAT).
In June this year, the SEBI (Securities and Exchange Board of India) had asked Franklin Templeton to refund investment management and advisory fees to the tune of Rs 512 crore, including interest, collected in relating to its six debt schemes which were shut down last year. However, upon concluding that the SEBI's penalty on Franklin Templeton was "excessive" for not taking into account the expenses borne by the fund house on managing the six wound-up schemes, the SAT directed it to deposit Rs 250 crore in an escrow account till the case is heard and disposed.
The market regulator had barred Franklin Templeton from launching any new debt schemes for a period of two years. However, the SAT had set aside this order and in response, SEBI moved the top court challenging SAT's directions.