SBI Funds Management (SBI MF) will distribute the fifth tranche of ₹3,303 crore to unitholders of the six closed programs of Franklin Templeton Mutual Fund during the week beginning Monday.
With this, the total disbursement will reach ₹21,080 crore, or 84% of assets under management (AUM) as of April 23, 2020, a spokesperson for Franklin Templeton MF said on Sunday.
As part of the first disbursement in February, investors received ₹9,122 crores, while ₹2,962 crore was paid to investors during the week of April 12, ₹2,489 crore in the week of May 3 and the last disbursement in the week of June 7 investors were paid ₹3,205 crores.
“SBI Funds Management Pvt Ltd (SBI MF) would distribute the next tranche of ₹3,302.75 crore to unitholders in the six plans. Payment to all investors whose accounts are KYC compliant with all available details will be made during the week of July 12, 2021, ”the spokesperson said.
The amount to be distributed to unitholders will be paid by forfeiture of the units in proportion to the net asset value on July 9 of this year, he added.
Payment will be made electronically to all eligible unitholders by SBI MF, who has been appointed liquidator of the plans in liquidation by the Cour de cassation.
In the event that the unitholders’ bank account is not eligible for electronic payment, a check or demand draft will be issued and addressed to their head office by SBI MF.
In March, the Supreme Court accepted the Standard Operating Procedure (SOP) finalized by SBI MF to monetize the assets and distribute the proceeds to unitholders of the six debt programs of Franklin Templeton Mutual Fund.
Franklin Templeton MF closed its six debt mutual funds on April 23, 2020, citing redemption pressures and lack of liquidity in the bond market.
The plans – Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund – together had an estimate ₹25,000 crore as AUM.