Aditya Birla and HDFC, also rushed to hold conference calls with their investors in an effort to reassure them about their portfolios
According to MF advisors, the move will impact investor perception about the fund house in the short term
Fund houses say a committed liquidity line from RBI can ease pressure
The Sensex ended 536 points or 1.7% lower at 31,327, while the Nifty dropped 1.7% or 160 points to close at 9,154 on Friday
The 30-share BSE Sensex settled 535.86 points or 1.68 per cent down at 31,327.22
FTMF stunned all by deciding to shutter operations of six schemes with assets under management of more than Rs 25,000 crore
MF distributors fear investors could start to withdraw their investments in large quantum from debt schemes, following Franklin Templeton's move
Association of Mutual Funds in India urges investors to remain calm after Franklin Templeton shut the debt funds.
Secorally, barring Nifty Pharma, all the other indices on the NSE ended in the red
The decision has been prompted by lack of liquidity in the high-yield market, as well as heavy redemption pressures that are affecting all debt funds
At 10:16 am, the S&P BSE Finance and S&P BSE Bankex were down 2.9 per cent and 2.6 per cent, respectively as compared to a 1.5 per cent decline in the S&P BSE Sensex.
However, Sebi Chairman Ajay Tyagi parried questions on whether such a move is illegal or if it hurts the broader cause of protection of investors' interests
Fund house has carved out separate portfolios in six schemes to hold the exposure
Franklin Templeton MF announced 100% mark-down; others followed valuation metric after SC rejected telcos' petition
The NCDs held by the fund house's schemes will mature in June, 2020
NAVs of these schemes slip between 0.4% and 2%
Avoiding momentum and focusing on quality at a reasonable price has helped Roshi Jain of Franklin Templeton Mutual Fund emerge a winner
India's Vivek Kudva and Harshendu Bindal given higher international responsibilities