The Supreme Court has postponed the hearing of the Franklin Templeton case for two weeks. Franklin Templeton Mutual Fund announced the closure of its six debt schemes on April 23, 2020 citing withdrawal pressure and lack of liquidity in the bond market. In this case, Ahmedabad uniters filed a petition in the Supreme Court. The Supreme Court, after hearing the petition, has ruled to return the money to the unitholders.
These 6 schemes were discontinued - Franklin Templeton has these schemes - India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Short Term Income Plan, Franklin India Credit Risk Fund, Franklin India Dynamic Acrural Fund and Franklin India Income Opportunities Fund. The company had announced the closure of these 6 mutual fund schemes on 23 April citing pressure of payment and lack of cash in the bond market.
Earlier this month, the Supreme Court had ordered disbursement of Rs 9,122 crore to unitholders of Franklin Templeton's 6 mutual fund schemes within three weeks. In its previous order, the Supreme Court gave the responsibility of monitoring fund transfers to the unitholders to SBI Mutual Funds. Funds will be transferred to the unitholders in proportion to the units invested.
Franklin Templeton had said that since its 6 plans closed in April 2020, Rs 13,789 crore has been received as maturity, pre-payment and coupon payments. Five of these schemes are now cash positive. These include Rs 9,190 cash till January 15, 2021. 63% of the assets of the closing Franklin India Ultra Short Bond Fund are in cash. At the same time, 50 per cent of the assets of Low Duration Fund, 41 per cent of Dynamic Acquire Fund, 26 per cent of Credit Risk Fund and 9 per cent of Franklin India Short Term Income Plan are in cash.