Franklin MF liquidates lien marked fixed deposit by ADAG
By doing this, the asset manager has brought down its exposure to the ADAG group.
Five debt mutual fund schemes of Franklin Templeton Mutual Fund namely Low Duration Fund, Income Opportunities Fund, Dynamic Accrual Fund, Credit Risk Fund and Short Term Income Plan have exposure to debentures of the group.
Post the liquidation, its holding in Low Duration Fund has come down from 2.9 per cent to 2.3 per cent, in Income Opportunities fund from 2.2 per cent to 1.7 per cent, in Dynamic Accrual from 2.8 per cent to 1.9 per cent, in Credit Risk Fund from 4.8 per cent to 3.9 per cent and Short Term Income Plan from 3.1 per cent to 2.4 per cent. These exposures are secured by way of pledge over shares of listed companies of Reliance ADAG group namely Reliance Capital, Reliance Infrastructure, Reliance Power and Reliance Home Finance.
“The cash top-up available in these transactions was used to reduce outstanding exposure and the transactions remain adequately covered. We continue to engage with the company,” said a spokesperson for Franklin Templeton Mutual Fund.