SBI Funds Management (SBI MF) will pay the seventh tranche to unitholders of the six closed programs of the Franklin Templeton Mutual Fund. This deposit is worth approximately ??1,115 crore and will reach unitholder accounts from Monday.
After payment, the total disbursement will reach ??25,114 crores, or 99.6% of assets under management (AUM) as of April 23, 2020, when the fund company announced it was shutting down the programs, a spokesperson for Franklin Templeton MF said on Friday.
As part of the first disbursement in February, investors received ??9,122 crore, while 2,962 crore rupees was paid to investors in April, ??2,489 crores in May, ??3,205 crores in June, ??3,303 crore in July and ??2,918 crore in September.
“SBI Funds Management Pvt Ltd (SBI MF) would distribute the next tranche of Rs 1,115.55 crore to unitholders of the six programs,” the spokesperson said.
Payment to all investors whose accounts are KYC compliant with full details available will begin from November 22, he said.
The amount to be distributed to unitholders will be paid by forfeiture of the units in proportion to the net asset value on November 18 of this year, he added.
Payment will be made electronically to all eligible unitholders by SBI MF, who has been appointed liquidator of the plans in liquidation by the Cour de cassation.
In the event that the unitholders’ bank account is not eligible for electronic payment, a check or demand draft will be issued and addressed to their head office by SBI MF.
In March, the Supreme Court accepted the Standard Operating Procedure (SOP) finalized by SBI MF to monetize the assets and distribute the proceeds to unitholders of the six debt programs of the Franklin Templeton Mutual Fund.
The fund company closed its six debt mutual fund programs on April 23, 2020, citing redemption pressures and lack of liquidity in the bond market.
The programs – Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund – together had an estimate of over ??25,000 crore in AUM.
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