“I am pleased to share with you that the Hon’ble Supreme Court has accepted our prayer to permit distribution of available cash in the schemes and directed that an amount of INR 9,122 crore (distributable surplus as of January 15, 2021) be distributed to the respective unitholders in proportion to their holdings in the schemes under winding up,” Sapre said.
Sapre also informed investors that Supreme Court has directed that SBI Mutual Fund be entrusted with the activity of distributing available cash to the unitholders. “I would like to assure you, that we will provide all assistance SBI Mutual Fund may require to ensure distribution of available cash at the earliest,” Sapre said.
Five of the six mutual fund schemes, that were shut down in April, have turned cash positive and have Rs 9,698 cash (as of January 31, 2021), subject to fund running expenses. Sapre did not speak about how much these expenses would be. However, Franklin India Income Opportunities fund has outstanding borrowing, which has steadily come down from 37.55% on April 24, 2020 to 5% at the end of January 2021. This scheme does not have cash to be distributed among investors.
Sanjay Sapre also said that five out of six would up schemes have higher NAV as on January 29, 2021 than the NAV on April 23, 2020, the date on which the winding up decision was taken. Franklin India Income Opportunities Fund’s NAV has fallen from the day it was shut in April.
