With the Supreme Court permitting distribution of available cash in the five cash positive schemes under winding up, unitholders will receive some money in proportion to their holding in the schemes. Payment will be coming in from February 15 onwards to all investors whose accounts are KYC compliant and where all details are available.Â As directed by the Supreme Court, SBI Funds Management Pvt. Ltd. (SBI MF) will distribute this amount to unitholders.
If you would like to know how payout calculation is done, how the units will be extinguished etc, here is an illustration of how the process will work. We have taken the example of Franklin India Ultra Short Bond Fund, the scheme which will make the biggest payout. Read on.Â
Basic things to know
The amount to be paid to unitholders will be calculated as per the distributable amount as a percentage of AUM. For instance, the AUM of Franklin India Ultra Short Bond Fund (FIUBF) is Rs 10,247.68 crore.Â The cash available for distribution as on January 15, 2021 in that scheme was Rs 5,075.39 or 49.53 per cent of AUM.
A unitholder will be paid by extinguishing proportionate units at the NAV dated 12 February 2021. Accordingly, the units held by an investor in the scheme will reduce to that extent.
Let us take a look at an example of FIUBF-Retail Plan Growth Option investor.
As on February 12, 2021 and prior to extinguishment, assume the investor portfolio value was Rs 1 lakh (A). The NAV per unit on that day was Rs 27.7411 (B).
So, units prior to extinguishment is 3604.760 i.e Rs 1 lakh divided by Rs 27.7411.
Since an unitholder of Franklin India Ultra Short Bond Fund will receive a payout percentage of 49.53 per cent, the cash payout amount on the above Rs 1 lakh portfolio will be Rs 49,530.
Thus, units to be extinguished due to cash payment will be Rs 49,530 divided by Rs 27.7411 NAV = 1,785.437 units.
This means the investor will be left with balance units of 3604.760 (total) minus 1,785.437 (extinguished) = 1819.323 units. Â
The payment will be made electronically to all eligible unitholders by SBI MF. In case your bank account is not eligible for an electronic payment, a Demand Draft/Cheque will be issued and sent to your registered address by SBI MF. Franklin MF will send an account statement to all unitholders showing details of units extinguished and payment made.
However, if you hold units in your demat account, please contact your Depository Participant (DP) for your transaction statement. For your Capital Gains statement, you may reach out to Franklin via their website, call centre or from your registered email ID and they will share the same with you.Â
Please note that the distribution for the 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. So those unitholders who fall in this category may complete these formalities so that the payment can be released to them at the earliest.
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