Franklin Templeton Mutual Fund has already disbursed INR 9,122 crore in February 2021. The assets in the six shutdown schemes were worth around INR 26,000 crore on the day they were frozen and the NAV now exceeds the values as of 23rd April 2020.
As of 15th April 2021, the six schemes have received total cash flows of INR 17,312 crores from maturities, coupons, sale and prepayments since winding up. SBI Funds Management Pvt. Ltd. has been appointed as the liquidator by the Supreme Court of India. On 18th March 2021, the court accepted the standard operating procedure statement which was prepared by SBI Mutual fund for disposal of assets to unitholders.
Payout of the second tranche at INR 2,962 crore has been successful in the week following 12th April 2021 and the total disbursement to the unitholders across six schemes now stands at INR 12,084 crore. Cash available for distribution in the six schemes stands at INR 447 crore post the payout of the second tranche. The payment to investors was made by extinguishing the proportionate units in the scheme on the prevailing net asset value (NAV) as of 9 April.
The payouts will vary for the six schemes are as below*:
*As a percentage of assets, unitholders will receive
|Scheme||Total to be paid (Rs crore)||Payout in the 2nd Tranche (%)||Total Payout till (%)|
|Franklin India Ultra Short Bond Fund||10,313||28.42%||63.65%|
|Franklin India Low Duration Fund||2,619||14.18%||67.43%|
|Franklin India Short Term Income Fund||5776||13.37%||20.42%|
|Franklin India Income Opportunities Fund||3777||6.67%||33.00%|
|Franklin India Credit Risk Fund||2635||11.22%||45.79%|
|Franklin India Dynamic Accrual Fund.||1808||11.23%||6.69%|
It is anticipated that the investors in all six funds will be able to recover most of their money with the exception of a small proportion of high-yield papers. Furthermore, the recent policy by RBI which indicated more bond-buying and a supportive monetary policy is expected to aid the liquidation process.