Franklin Templeton appoints KMB as adviser to help wind up six schemes

By: |
Published: May 21, 2020 7:26:07 AM

Commenting on the development, Sujata Guhathakurta, president, debt capital markets, KMB, said the bank would work closely with the trustees and the AMC to assist them in the wind up of the schemes.

Franklin Templeton, KMB, Kotak Mahindra Bank, Sebi, Franklin Templeton Mutual Fund, mutual fundFranklin Templeton MF had shuttered six of its debt schemes in April and informed investors they could not redeem investments due to illiquid market conditions in the wake of the Covid-19 pandemic.

Franklin Templeton Trustee Services on Wednesday appointed Kotak Mahindra Bank (KMB) as an adviser to assist the mutual fund with all portfolio actions pertaining to the six funds that were shuttered last month. The Securities and Exchange Board of India (Sebi) had advised the trustees to appoint an independent adviser who would assist them with the process, even as the approval of unit holders is being sought for the winding up.

Commenting on the development, Sujata Guhathakurta, president, debt capital markets, KMB, said the bank would work closely with the trustees and the AMC to assist them in the wind up of the schemes.

An email sent to investors on Wednesday said, “Trustees of Franklin Templeton Mutual Fund are pleased that Kotak Mahindra Bank would, wherever required, act as their agent and provide its independent advice and assistance to the Trustees through the entire process. The appointment of Kotak Mahindra Bank will provide the trustees with the added experience and ability to monetise assets at the earliest possible time.”

Franklin Templeton MF had shuttered six of its debt schemes in April and informed investors they could not redeem investments due to illiquid market conditions in the wake of the Covid-19 pandemic. These six funds were: 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.

All redemptions and fresh investments were stopped in April. Markets regulator Sebi had advised the trustees of Franklin Templeton to appoint an independent adviser to liquidate the portfolio and repay investors.

Shuttering of the six schemes put investors in a lurch, leading to many others pulling out money from other credit risk funds through April.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Labour law suspension: Uphold India’s international commitments, ILO expresses deep concerns to PM Modi
2IDFC First Bank senior management takes 10% pay cut
3Major industries, govt agencies owe about Rs 5 lakh cr in outstanding dues to MSMEs: Nitin Gadkari