Finally, after long-drawn legal wranglings, Franklin Templeton will start distributing the cash in the 6 debt schemes that were would up. Here’s a letter from Sanjay Sapre, President of FT to investors.
February 11, 2021
In my previous communication, I had shared with you that the Hon’ble Supreme Court has accepted our prayer to permit distribution of INR 9,122 crores (available cash in the schemes as of January 15, 2021) to the respective unitholders in proportion to their holdings in the schemes under winding up. The Hon’ble Supreme Court, as agreed by all the parties, has directed that SBI Funds Management Pvt. Ltd. (SBI) be entrusted with the activity of distributing available cash to unitholders. I would like to update you, that we have started working closely with the SBI team and are providing the assistance they require to ensure distribution of available cash at the earliest.
This letter is to update you that the Hon’ble Supreme Court has accepted the application for placing on record the distribution mechanism proposed to be followed by SBI, in compliance with the order of the Hon’ble Supreme Court dated February 2, 2021. Available cash across schemes is as follows:
|Scheme||Amount (INR in crores)|
|Franklin India Ultra Short Bond Fund||5075.39|
|Franklin India Low Duration Fund||1625.36|
|Franklin India Short Term Income Fund||469.24|
|Franklin India Credit Risk Fund||926.15|
|Franklin India Dynamic Accrual Fund||1025.45|
Please find below the process of distribution of monies for the five cash positive schemes under winding up:
Payment will be made by extinguishing proportionate units at the prevailing NAV on the date of processing.
Payment to all investors whose accounts are KYC compliant with all details available will be made during the week of February 15, 2021. Please click here to check the status of your account in the schemes under winding up. Please note that the distribution for unitholders, whose PAN/KYC, FATCA/UBO, Minor through guardian or Transmission details / documentation are not available/invalid, will be made after completion of the regulatory/ compliance requirements.
Payment will be made by SBI from the bank accounts (one per scheme) opened by them for this purpose.
Payment will be made electronically to all eligible customers.
In case your bank account is not eligible for an electronic payment, a Demand Draft will be
issued and sent to your registered address.
You will receive an account statement from Franklin Templeton showing the details of units extinguished and payment made.
Capital Gains statements will also be made available. You may request the same via our website, call centre or from your registered email ID.
Franklin Templeton will be responsible for deduction of TDS and issue of TDS certificates for NRI investors.
Franklin Templeton will assist with query resolution, unclaimed payments or any other payment issues.
In the meanwhile, my team and I remain available to answer any questions you may have. Please write to us at [email protected] or call our toll-free investor helplines 1-800-258- 4255 or 1-800-425-4255 from 8 a.m. to 9 p.m. Monday to Saturday.
Thank you once again for your continued patience and support during these challenging times. Please stay safe and healthy.
President, Franklin Templeton Asset Management (India) Pvt. Ltd.
How will the cash be distributed?
The units proportional to the cash in the funds will be debited and the cash will be credited to your bank accounts. Here’s how the calculation will work:
Scheme & Plan name: FIUBF-Retail Plan Growth Option
As on February 12, 2021 and prior to extinguishment
- Portfolio value: INR 100,000 (A)
- NAV per unit: 27.7411 (B)
Units prior to extinguishment: 3604.760 [100,000 / 27.7411] © = (A / B)
Payout percentage: 49.53% (D)
Payout amount: INR 49,530 (E) = (A x D)
Units extinguished: 1,785.437 (C x D) or (E / B)
When will I get my money?
You should get the money in the next few days.