Franklin Templeton MF gets a YES for winding up of six schemes

According to the observer’s (TS Krishnamurthy) report over 90% of the unit holders in these six schemes have voted for winding up.

BCCL
Franklin Templeton Mutual Fund has got a YES nod from the unit holders to wind up the six shut schemes. The observer’s (TS Krishnamurthy) report suggests that over 90% of the unit holders in these six schemes have voted for winding up, sources suggest. The e-voting process took place from December 26-28, 2020. SEBI had appointed Taruvai Subayya Krishnamurthy, the former chief election commissioner of India as the observer for e-voting.

“We are thankful to our unitholders for voting overwhelmingly in favour of the orderly winding up in all 6 schemes. We deeply appreciate the support of our investors and partners and hope to commence distribution of investment proceeds at the earliest, subject to the directions of the Hon’ble Supreme Court in the next hearing scheduled to be held on 25 January 2021,” Franklin Templeton Mutual Fund stated.

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The Supreme Court of India had directed the fund house on December 3 to initiate steps to seek consent from the unit holders in a week. Franklin Templeton Mutual Fund shut six of its debt schemes - Franklin India Low Duration Fund, Dynamic Accrual Fund, Credit Risk Fund, Short Term Income Plan, Ultra Short Bond Fund and Income Opportunities Fund. - on April 23, citing unfavourable conditions in the bond market due to the Covid-19 pandemic.

Investors should know that even after Franklin gets the consent; it will take time for them to refund the entire money to the unitholders. The cash positive schemes will start doling out the instalment after the positive outcome of e-voting. However, some schemes like Franklin India Income Opportunities Fund don’t have cash to start paying back the money. Investors in these schemes will have to wait longer.

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