On September 1, SBI Funds Management (SBI MF) would make the sixth payout to unitholders of Franklin Templeton Mutual Fund’s six defunct schemes, totaling about Rs 2,918 crores.
The entire payout after the settlement will be Rs 23,999 crore, or 95.18 per cent of assets under management (AUM) on April 23, 2020, according to a Franklin Templeton MF spokesman when the financial institution announced the schemes’ closure.
For six mutual fund schemes that the company abruptly shut down, the Supreme Court ordered Franklin Templeton Mutual Fund to pay Rs 9,122 crore to unitholders of those funds. Unitholders should receive a proportionate share of a fund’s assets, as ordered by the Supreme Court.
Owners received Rs 9,122 crore in the first instalment in February, followed by Rs 2,962 crores in April, Rs 2,489 crores in May, Rs 3,205 crores in June, and Rs 3,303 crores in July according to a spokesperson for SBI Funds Management Pvt Ltd, the next payment of Rs 2,918.5 crore will be given to unitholders throughout all six schemes (SBI MF).
From September 1, 2021, all shareholders whose accounts are KYC compliant among all available details will be paid, he stated. According to him, the money to be disbursed to unitholders would be paid by extinguishing equal units at the net asset value on August 27 of this year.
SBI MF, which has been designated as the administrator for the schemes under winding up by the Supreme Court, would make the payment digitally to all qualified unitholders. A demand draught or a cheque will be delivered to the unitholders’ registered address if their bank account is not eligible for electronic payments.
According to SBI MF’s Standard Operating Procedure, the six debt schemes of Franklin Templeton Mutual Fund’s six debt schemes would be liquidated in March and the proceeds will be distributed to unitholders. Six debt mutual fund schemes were closed on April 23, 2020, due to redemption demands and a lack of liquidity in the bond market, according to the fund house.
It is anticipated that the combined assets under management (AUM) of the schemes — including the Low Duration, Dynamic Accrual and Credit Risk Funds of Franklin India as well as the Short Term Income Plan and Income Opportunities Fund of Franklin India — totaled approximately Rs 25,000 crores.
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