“Payment to all investors whose accounts are KYC compliant with all details available will be made during the week of February 15, 2021,” said Sanjay Sapre, President, Franklin Templeton in a communication with unitholders. The payment will be made to unit holders by extinguishing proportionate units of the scheme.
As of January 15, five schemes have cash in their portfolios. unitholders of Franklin Templeton Ultra Short Term Fund will get Rs 5075 crore, Low Duration Fund Rs 1625 crore, Short Term Income Fund Rs 469 crore, Credit Risk Fund Rs 926 crore and Dynamic Accrual Fund Rs 1025 crore.
About 3 lakh investors in these six debt mutual fund schemes which have assets of Rs 26,000 crore have been hit since April 23 2020, when the fund house decided to wind up these schemes, on account of poor liquidity conditions in the debt markets due to Covid 19. Investors have been unable to access their money in these schemes as the winding up was challenged in courts and there was a stay order, which prevented the fund house from distributing or monetizing any assets in the schemes.
