Franklin MF takes 50% haircut on exposure to Essel group-backed firm

The NCDs held by the fund house's schemes will mature in June, 2020

Franklin Templeton Mutual Fund (MF) has taken a 50 per cent haircut on exposure to Diligent Media Corporation - the holding company backed by Essel group, that operated the DNA newspaper.  

The fund house had Rs 412 crore of exposure to non-convertible debentures (NCDs) of Diligent Media Corporation, spread across five of its schemes. This includes the outstanding interest payments.

In a note, Franklin Templeton MF, said, "Post the downgrade, the NCDs are now valued by FTMF at 50 per cent of the face value with effect from 12 December 2019, based on standard Amfi prescribed haircut. It may be