SBI Mutual Fund submitted a distribution plan after consideration from SEBIMoney to be returned to investors in 20 days, next hearing will be on February 17
The Supreme Court has approved the plan of SBI Mutual Fund to return money to investors of Franklin Templeton Mutual Fund. 9,122 crore is to be returned to Franklin Templeton investors. SBI Mutual Fund filed a distribution plan in the Supreme Court after consultations with SEBI. Now the next hearing in this case is to be held on 17 February.
In the last hearing, the order to return the money was given
The Supreme Court on February 2, during the previous hearing, had ordered refund of Rs 9,122 crore to Franklin Templeton investors. This amount is to be returned within 20 days. The 20-day period came into force from 2 February itself. Franklin Templeton abruptly closed 6 of its schemes in April last year. Mutual fund houses had said that these schemes have been closed due to lack of money.
These 6 date schemes were closed on 23 April
Franklin Templeton closed its 6 date schemes on 23 April. The schemes that were discontinued include Franklin India Low Duration Fund, Franklin India Dynamic Acrylic Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund. Recently, Franklin Templeton Mutual Fund had told its investors that till date schemes have received Rs 14,931 crore as maturity. The total AUM of these 6 closed schemes was 28 thousand crores.
Franklin manages more than 1 lakh crore fund
Franklin Templeton Mutual Fund manages more than 1 lakh crore rupees in India. But in recent times its fund has increased to 80 thousand crores. Whereas it manages $ 700 billion of funds worldwide. Franklin Templeton did not seek any approval from SEBI to discontinue the schemes.
Several fund houses on the way to Franklin Templeton
The Chennai Financial Markets and Accountability (CFMA) recently feared that there could be a number of incidents in the mutual fund industry, such as Franklin Templeton. This will cause loss to investors. The CFMA has stated that the only hope left from the court is for 3 crore mutual fund investors in the country. It also has investors who are stranded in Franklin Templeton. This association has said that if this happens, the fund industry will suffer a loss of Rs 15 lakh crore.
