Franklin payouts may be delayed over authorisation for monetising holdings

Industry experts say in case of an unprecedented scenario of a deadlock in the voting process, the fund house would have to seek guidance from the regulator

Franklin Templeton Mutual Fund (FTMF) reached out to unit holders of its six discontinued schemes on Thursday, informing them that trustees would need their authorisation to monetise the holdings in respective schemes, without which the repayment process could get delayed.

“If Trustees do not receive authorisation to proceed with the disposal of assets, this may delay the process of monetising such assets and distribution of proceeds,” the fund house said. It added that the payment schedule/payouts could be finalised and implemented only after successful completion of the voting process.
 

Industry experts say in case of an unprecedented scenario of a