Franklin Templeton Investments India

SBI Funds Management Ltd on Tuesday said it has completed the liquidation of assets in the six shuttered debt schemes of Franklin Templeton Mutual Fund and distributed Rs 27,508 crore to the latter's unitholders. Franklin Templeton in April 2020 announced shutting down of the six debt mutual fund schemes, citing redemption pressures and lack of liquidity in the bond market. With this, SBI Funds Management has liquidated 217 securities and disbursed around Rs 27,508 crore which constitutes 109 per cent of the value of the securities as on date of winding up -- April 23, 2020, the company said in a statement. It further said that the liquidation activity was done without creating any market dislocation in order to get the best liquidation value and safeguard the interest of unitholders of Franklin Templeton Mutual Fund (FTMF). The company was directed by the Supreme Court in 2021 to undertake the exercise of disbursement and liquidation of assets of the six wound-up debt schemes of .

The firm will soon file with the Securities and Exchange Board of India for a license for a category II Alternative Investment Fund, which will allow it to begin preparing for the private credit fund

The total amount disbursed so far ranges between 84 per cent and 108 per cent of the respective reported AUM values of the 6 funds as of April 23, 2020

The value of notices Sebi has sent out since getting recovery powers in 2013 is more than twice Mumbai's annual municipal budget

Apex court rejects objections raised by a few investors against e-voting results, directs for winding up, disbursement of funds to continue as per earlier orders

If investors in the six Franklin Templeton schemes vote for reopening, they may have to take large haircuts

Top court slams Sebi for staying on sidelines when unitholders began redeeming their investments; redemptions to remain suspended till further notification

Followed due process, says fund house

Sebi also observed that as a stock market regulator, it conducts investigation to examine alleged or suspected violation of laws and regulations

Essel group firms -- Cyquator Media, Direct Media and Khoobsurat Infra -- had appealed to the division bench after the single-bench of Delhi HC had declined any relief

Fund house exploring ways to expedite secondary market sales to boost liquidity

Fund house informs investor that two schemes under winding-up have cash surplus after repaying bank borrowings

The e-voting, which was scheduled on June 9, was suspended following Gujarat HC's decision

While the RBI has done a number of liquidity enhancing measures, and the government has also come up with credit guarantee schemes, the issue in hand is clearly that of solvency

According to experts, this move could delay the wind-up process of monetising the scheme assets and distributing the payouts to investors

The PIL had been filed by an investor protection society in response to the abrupt winding up six debt schemes worth Rs 28,000 crore of assets under management by the fund house

Stung by the comments made by the global chief, market regulator on Thursday issued a press release defending the new rules it introduced in October last year

Over Rs 25,000 crore ($3.3 billion) worth of investments belonging to 300,000 investors are currently stuck in the six debt schemes wound up by the fund house

Sebi regulations required fund houses to cap exposure to such papers at 10% of scheme assets

Banking & PSU debt fund has seen assets declining from 1,542 crores to Rs 1,134 crore in the same time-frame