SBI to start monetising assets of Franklin MF's shut schemes next week

SBI MF will start the process of monetising assets of the six shuttered schemes of Franklin Templeton from next week. This comes in after the Supreme Court took note of the standard operating procedure prepared by SBI Mutual Fund in a hearing held Thursday.

“We will start looking at selling securities in the six schemes starting next week. Money will be disbursed to unit holders as soon as we collect a reasonable amount,” said DP Singh, executive director, SBI Mutual Fund.

Five schemes have already disbursed ₹9,122 crore to unit holders and have accrued another ₹1,370 crore cash as on March 15, 2021. “Many securities in the portfolio are fairly liquid. The environment has changed as compared to last year, which will ease monetisation,” said Kirtan Shah, CFP, Sykes and Rays Securities.

The six shuttered schemes have received total cash flows of ₹15,272 crore until March 15, 2021 from maturities, coupons and prepayments. For the last fortnight ended March 15, 2021, the schemes received cash flows of ₹224 crore. Borrowing levels in Franklin India Income Opportunities Fund is down to ₹10 crore and is 1% of the AUM.