Mutual Funds' collateral declines as shares of ADAG companies tank

Franklin Templeton, Indiabulls MF & DHFL Pramerica MF have Rs 1,418-cr exposure

Mutual funds (MFs) led by Franklin Templeton, which has the highest exposure of Rs 1,244 crore through its debt schemes in the promoter entities of Anil Ambani group companies, will have to either seek higher collateral by way of topping-up of shares from promoter entities or risk lowering values of their schemes.
 
According to data from Value Research, mutual funds’ exposure to the debt papers of Anil Ambani’s Reliance group’s promoter entities — Reliance Infrastructure Consulting & Engineers, Reliance Big Entertainment and Reliance Big — stood at Rs 1,418 crore as on December 31, 2018.
 
These Reliance group