Franklin Templeton case: Supreme Court orders next round of payment of ₹684 cr
Premium- With the court’s order regarding the next payment, the liquidator, SBI Mutual Fund, will soon announce the date of payment to investors
The Supreme Court of India, on Wednesday, ordered the next round of payment of ₹684 crore to the unitholders of the wound-up Franklin Templeton schemes.
In April 2020, Franklin Templeton Mutual Fund announced the winding of six debt schemes-- Franklin India Low Duration, Franklin India Dynamic Accrual, Franklin India Credit Risk, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.
SBI Mutual Fund was appointed to liquidate the assets of the wound-up schemes and distribute the proceeds to unitholders.
With the court’s order regarding the next payment, the liquidator, SBI Mutual Fund, will soon announce the date of payment to investors.
Further, the court also cleared the confusion on whether the distributor commission accrued on the six wound-up schemes till the date of the liquidator taking over to be paid to unitholders or the distributors.
According to the information we last gathered, the brokerage (distributor’s commission on regular plans) accrued under these six schemes from the time of wound-up till 17 March, 2021, when the SBI Mutual Fund took over as liquidator, was ₹78 crore.
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The court dismissed the application that distributor commission accrued in the six wound-up debt schemes should not be distributed to investors.
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