Franklin Templeton case: Supreme Court orders next round of payment of Rs684 crore

India’s Supreme Court on Wednesday ordered the next round of payment of 684 crores to unitholders of Franklin Templeton’s liquidated plans.

In April 2020, Franklin Templeton mutual fund announced the liquidation 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 Opportunity. Funds.

SBI Mutual Fund has been appointed to liquidate the assets of the liquidated plans and distribute the proceeds to unitholders.

Along with the court order for the next payment, the liquidator, SBI Mutual Fund, will soon announce the payment date to investors.

In addition, the court also cleared up confusion as to whether the distribution commission accrued on the six liquidated plans up to the date of the liquidator’s assumption should be paid to unitholders or to distributors.

According to the latest information we have gathered, the brokerage fees (distributor’s commission on the regular plans) accumulated under these six plans since the liquidation until March 17, 2021, the date on which the SICAV SBI took over as liquidator, were 78 crore.

The court rejected the claim that the distributor commission accumulated in the six liquidated debt schemes should not be distributed to investors.

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Elaine R. Knight