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    Franklin’s shut debt schemes get Rs 1,964 crore from investments

    Synopsis

    Sanjay Sapre, president of Franklin Templeton India, said the money came in over the past couple of months from maturities, pre-payments and coupon payments since the money manager decided to close the six investment plans – the first such closures in India’s active asset-management industry.

    Agencies
    Sapre told unitholders that all legal cases relating to the winding up of these six schemes will be transferred to a division bench of the Karnataka High Court
    Franklin Templeton has told investors in its six debt schemes that are being wound up that the plans received Rs 1,964 crore as routine proceeds from their investments, and that two of the funds featuring in the unusual list of terminated programmes have repaid their loans to banks.

    Sanjay Sapre, president of Franklin Templeton India, said the money came in over the past couple of months from maturities, pre-payments and coupon payments since the money manager decided to close the six investment plans – the first such closures in India’s active asset-management industry.

    Two of the schemes undergoing winding-up have surplus cash, another two of the schemes have repaid their bank borrowings and are cash positive, and in one scheme, the borrowing level has nearly halved to 11.25 per cent, Sapre said in a letter.
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    • Annualized Return
      for 3 year: 2.81%
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    • Time taken to double
      money: 9.4 Years
    “Cash in the schemes can be paid to unitholders only after receiving consent through e-voting. The e-voting and unitholders’ meet for the six schemes under winding up cannot be conducted until the stay order issued by the Gujarat High Court is vacated,” read the letter. “In the meanwhile, we have been working to analyse the portfolio of each scheme and develop a monetisation strategy for each of the securities in the portfolio.”

    Sapre told unitholders that all legal cases relating to the winding up of these six schemes will be transferred to a division bench of the Karnataka High Court and the Supreme Court has directed the matter be completed within three months.

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    4 Comments on this Story

    Girish Menon11 days ago
    I had filed a complaint with SEBI requesting for penalising Franklin and having Franklin compensate for investors loss of liquidity which has resulted from Franklins own decision & actions of winding up. There is no legal contract for Franklin to make those 6 funds illiquid as all those funds are supposed to be open ended & hence their actions are illegal. After several email exchanges with Franklin, one of their staff did call me and agreed to escalate the matter with his seniors.In my view i think it is worth the wait for the Court battle & Sebi Forensic audit report, unless some yes bank like scam or fraud gets reported where kickbacks were taken for buying bad quality debt securities. Primary reason for suspicion is Franklin held an EGM to indemnify all its staff against any losses.So keeping my fingers crossed and hoping for the best positive outcome for all.
    Arun Gupta15 days ago
    Please return our hard earned money at the earliest. I need my money urgently.
    Skdubey16 days ago
    Franklin should pay to investors asap. This is our hard earned money.
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