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

    Synopsis

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

    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.

    franklinET Online

    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.

    ( Originally published on Jan 18, 2021 )
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    14 Comments on this Story

    Mahesh Moharir44 days ago
    All unit holders were forced to vote yes in favour of winding up the 6 schemes. Franklin management should not consider this as their victory or unit holders has forgotten the wrong doings by management. Once matter is solved completely time to say bye to Franklin from India permanently. Sebi shud cancel their registration.
    M.P.KRISHNAIAH45 days ago
    Whether we have to retain the funds Franklin templeton fund or to withdraw. Kindly a suitable advices expecting from the experts
    Shyamsundar Pahari46 days ago
    We were forced literally to say YES, We didn't have any options other than saying YES as our hard money at stake and at mercy of one of the most corrupted fund house FTMF. If you(FTMF) does not return fair value to unit holder, you have no right to do business in India, Let's SC , SEBI protect our fund value andreturn fair value at the earliest please.
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