Mutual Funds: Franklin Templeton's shut schemes now have Rs 1,981 cr cash for distribution

The six shut debt schemes of Franklin Templeton Mutual Fund have Rs 1,981.02 crore of cash available for distribution to the unit holders of the schemes.

So far, the fund house has distributed Rs 21,080.34 crore to the investors.

Out of the Rs 1,981.02 crore available for distribution as of August 13, Franklin India Ultra Short Bond Fund has Rs 366.81 crore, Franklin India Short Term Income Plan has Rs 597.70 crore and Franklin India Income Opportunities Fund has Rs 440.92 crore, among others, said the company spokesperson.

The Trustee of Franklin Templeton decided to wind up six of our debt schemes in April 2020. The decision was taken because the markets had become illiquid due to the severe impact of Covid-19.

In a letter to investors last week, Franklin Templeton Asset Management (India) Pvt Ltd President Sanjay Sapre said: "The six schemes have disbursed a total of Rs 21,080 crore to investors till date. This equals 84 per cent of the AUM as on April 23, 2020, and ranges from 62 per cent to 99 per cent across the six schemes."

Sapre also said that the average NAV at which the five tranches have been disbursed for each of the six schemes is higher than the NAV as on April 23, 2020.

With respect to the appeals filed before the Securities Appellate Tribunal (SAT), he had said that the SAT has issued orders staying enforcement of the SEBI's orders conditioned on deposit of a portion of the monetary penalties.

The SEBI filed an appeal before the Supreme Court against the interim order issued by SAT in the matter of AMC. On July 26, the SC disposed of the appeal after recording its statement that they will not launch any new debt scheme till the disposal of appeal by the SAT.