The e-voting window would open on June 9 and close on June 11 and the unit holders' meeting through video conferencing would happen on June 12, the fund house said in notices to investors.
Franklin Templeton Mutual Fund, which closed its six debt schemes, on Thursday said the voting window for affected investors would be opened for three days starting June 9. The e-voting window would open on June 9 and close on June 11 and the unit holders’ meeting through video conferencing would happen on June 12, the fund house said in notices to investors.
It further asked investors, who have not registered their e-mail ID yet, to register it by June 8 as those who do not have an e-mail ID or mobile number registered with the fund house will not be able to participate in the voting process.
Each unit holder is entitled to vote only once per scheme that they have invested in, irrespective of the number of units. Investors are being asked to vote as schemes can be wound up only after repaying the amount due to the unit holders.
The steps to wind up the schemes include active monetisation of assets and return of the investment proceeds to the unit holders.
K Fintech has been entrusted by the fund house to carry out the voting process. The fund house said that investors will have two options on how the scheme assets should be monetised — authorise the trustees assisted by Kotak Mahindra Bank as independent advisor and supported by the AMC or authorise Deloitte Touche Tohmatsu India LLP assisted by the AMC with the AMC being advised by Kotak.
If majority of unit holders select Deloitte, the trustee’s role will be restricted to distribution of proceeds to unit holders after payment of liabilities and expenses. Investors will also have an option to vote ‘no’ for either of the two proposals but this will delay the monetisation of scheme assets.
According to the fund house, in the absence of authorisation, the winding up process will be delayed as further steps will be possible only after seeking a fresh authorisation from the unit holders.
The pay-outs to investors can be finalised and implemented only after the successful completion of the voting process. Franklin Templeton MF said the proceeds of sale will be first utilised towards discharge of liabilities that are due and payable under the scheme and after making appropriate provision for meeting the expenses connected with such winding up, the balance will be paid to the unit holders in proportion to their respective interest in the assets of the scheme.
It is the endeavour of trustees to liquidate the assets in an orderly manner and distribute the proceeds to the unit holders in the earliest possible opportunity.
Last month, the fund house had closed six of its debt funds, citing redemption pressures and lack of liquidity in the bond markets.
These schemes, together having an estimate amount of over Rs 25,000 crore assets under management, 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.