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Franklin debt funds wind up: NAV in 5 out of 6 schemes higher since April

In what could allay some fears of losses, Franklin Templeton Mutual Fund has disclosed that in 5 out of 6 debt schemes to be wound up the NAV as on January 29, 2021 is higher than the NAV on April 23, 2020, the date on which the winding up decision was taken.

The 5 schemes mentioned above are Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund and Franklin India Short Term Income Plan.

There have been unsubstantiated reports alleging FT investors in the 6 debt schemes can lose 40-50 per cent. However, the NAV data disclosed by the fund-house shows a different picture altogether.

The decision to voluntarily wind up six schemes has been one of the most difficult decisions for the AMC and its lakhs of investors. Franklin, all the while, has maintained that the decision to wind up those schemes was taken with the sole objective of safeguarding value for investors.

The NAV values have improved in most of the schemes on account of the cash generated in these schemes over the last 9 months.

“For one scheme (Franklin India Income Opportunities Fund), the NAV is only marginally lower, ” said Sanjay Sapre of Franklin Templeton in an investor communique.

Further, the combined AUM of the six schemes has increased from Rs 25,648 crore on April 23, 2020 to Rs 26,414 crore as on January 29, 2021.

Recently, the Supreme Court permitted the distribution of available cash in the schemes and directed that an amount of Rs 9,122 crore (distributable surplus as of January 15, 2021) be distributed to the respective unitholders in proportion to their holdings in the schemes under winding up.

Already, across the six schemes under winding up, an overwhelming majority of unitholders (around 96% by unitholders) voted in favour of the winding up. While some reports have alleged that due processes were not followed for the voting, the Supreme Court has so far not given any order on this issue.

From April 24, 2020 to January 29, 2021, the six schemes under winding up have received Rs 14,391 crore from maturities, pre-payments, and coupons. Some of this cash has been used to repay borrowings.Fiv

Five schemes have turned cash positive and have Rs 9,698 cash available to return to Unitholders.

The inflows received across 6 schemes are nearly 46% higher than anticipated in the maturity profile published on April 23, 2020.

The borrowing level in Franklin India Income Opportunities fund, the only fund with outstanding borrowing, has steadily come down from 37.55% on April 24, 2020 to 5% at the end of January 2021.

It will be pertinent to note that of the Rs 14,391crore received since April 24, 2020, slightly more than half of this amount has been received from securities rated â€œAâ€, followed by securities rated â€œAAâ€. Much of this cash has been generated from securities which were unlisted, or where FT was a majority holder â€“ nearly 28% of the cash is from unlisted securities and nearly 75% of the cash is from securities where the schemes are the sole or majority holders.

Most importantly, this cash has been received without any secondary market sale (active monetization) of securities in the six schemes.

The next Supreme Court hearing in this matter is scheduled for February 9, 2021.

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6 Franklin Templeton debt funds collect Rs 602 cr in Jan 16-29 period

SC orders Franklin to pay back debt investors Rs 9,122 cr in 20 days

Unitholders in 5 debt schemes of Franklin Templeton MF can hope to get some cash in the next 20 days.

This is after the Supreme Court on Tuesday directed that Rs 9,122 crore, the cash available for distribution as on January 15, in the to-be-wound up debt schemes of Franklin Templeton MF be disbursed to unitholders in proportion to their respective interest in the assets of the scheme, reports say. Do note that 5 of 6 debt funds are cash-positive.

The Bench of Justice S Abdul Nazeer and Sanjiv Khanna entrusted SBI Mutual Fund will carry out the exercise of disbursement, after counsel appearing for all parties agreed to the same, the reports said.

The distribution of money to unitholders is required to be completed within twenty days from today. The Court also gave the parties the room to move applications in case of any difficulty arising out of the process.

As on January 15, individually, Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund and Franklin India Short Term Income Plan have 63%, 50%, 41%, 26% and 9% of their respective AUM in cash. Unitholders of these 5 schemes will get cash due to the SC order.

Borrowing levels in Franklin India Income Opportunities Fund stood at 6% of AUM (assets under management) on January 15, and so it is still cash-negative. Unit holders of this scheme will not get any cash distribution.

Franklin Templeton spokesperson said: “We are pleased that, as requested by us, and in the best interests of Unitholders, the Honâ€™ble Supreme Court has directed the distribution of INR 9,122 crore (distributable surplus as of 15 January 2021) to the respective unitholders in proportion to their holdings in the schemes under winding up, subject to fund running expenses.

As previously stated, we went ahead with the difficult decision of winding up these schemes because of our firm belief that this was the right decision to preserve value for investors, as evidenced by the generation of cash in these schemes over the last 9 months. We believe the distribution of monies will provide unitholders with much needed liquidity and look forward to working with the Regulator and SBI Mutual Fund to distribute the cash within the period stipulated by the Court.”

6 Franklin Templeton debt funds collect Rs 602 cr in Jan 16-29 period

The six debt funds proposed to be wound up by Franklin Templeton MF have collected Rs 602 crore in Jan. 16 to 29 period, almost 10% less than Rs 669 crore collected in the previous fortnight.

Over the latest fortnight (January 16 – 29), these schemes received Rs 350 crore as pre-payments.

The 6 schemes have received total cash flows of Rs 14,391 crore till January 29, 2021 from maturities, coupons and prepayments.

The total number of cash positive schemes stands at five. These schemes have Rs 9,770 crore cash available to return to unitholders, subject to fund running expenses. The balance Rs 4,621 crore has been used to repay borrowings and interest thereon of the six schemes.

Individually, Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund and Franklin India Short Term Income Plan have 65%, 53%, 41%, 27% and 11% of their respective AUM in cash.

Borrowing levels in Franklin India Income Opportunities Fund continue to come down steadily and currently stands at 5% of AUM (assets under management). The scheme will return monies to investors after paying all the obligations/ liabilities towards borrowings/ expenses/provisions, if any, once the Supreme Court gives the nod. Currently the court is hearing the matter regarding the winding up of schemes.

The total AUM of the 6 schemes stands at Rs 26,412 crore at present.

Already Franklin MFâ€™s winding-up proposal has been approved by an â€œoverwhelming majority of over 96 per cent unit-holdersâ€ in the recent e-voting.

The matter is being heard in the Supreme Court now. If the top court allows, lakhs of investors who hold units in 5 of the 6 debt schemes will get some money back which have been stuck for nearly a year.

In April last year, Franklin shut down subscriptions and redemptions while proposing to wind up the six debt schemes citing Covid-induced illiquidity in credit markets.

Franklin gets ‘yes’ vote for winding up the six debt MFs

The Trustee of Franklin Templeton Mutual Fund in India, with the permission of the Honâ€™ble Supreme Court, had sought the consent of the unitholders under regulation 18 (15) (c) to wind-up the schemes.

The unitholders consent vote took place from December 26 to December 28, 2020 followed by the Unitholders meet via video conference on December 29, 2020.

The result of the e-voting has been announced by the Supreme Court. Out of the total number of unitholders who cast their votes, over 96% of unitholders have voted in favour of the winding up of the six schemes.

The voting results indicate the fund house would now not be required to resort to a distress sale of its underlying assets. This means it would be an orderly winding-up.

“We are thankful to our unitholders for voting overwhelmingly in favour of the orderly winding up in all 6 schemes. We deeply appreciate the support of our investors and partners and hope to commence distribution of investment proceeds at the earliest, subject to the directions of the Honâ€™ble Supreme Court. The next hearing in this matter is scheduled to take place on January 25, 2021,” said Sanjay Sapre, President, Franklin Templeton Asset Management (India).

The top court will next meet on January 25 to give directions on how the funds in the schemes should be paid back to the unitholders.
Five of the six schemes are cash positive, with the cash available at Rs 9,190 crore as of January 15, 2020. The final cash available for distribution will be subject to some fund-running expenses.

In April 2020, Franklin Templeton had taken the controversial step of winding up six of its debt schemes. It had cited extreme illiquidity in the market that had got accentuated by COVID-19.

The latest update as on January 15, 2021 is as follows:

From April 24, 2020 to January 15, 2021, the six schemes under winding up have received Rs 13,789 cr. from maturities, pre-payments, and coupons. Over the latest fortnight (January 1 – 15), the schemes received Rs. 669 cr., of which Rs. 617 cr. was received as pre-payments.
Franklin India Short Term Income Plan turned cash positive recently taking the total number of cash positive schemes to five. The five cash positive schemes have Rs 9,190 cr. available to return to unitholders as on January 15, subject to fund running expenses. Individually, Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund and Franklin India Short Term Income Plan have 63%, 50%, 41%, 26% and 9% of their respective AUM in cash.
The inflows received across 6 schemes is nearly 41% higher than anticipated in the maturity profile published for April 23, 2020.
Borrowing levels in Franklin India Income Opportunities Fund currently stand at 6% of AUM.
Of the Rs 13,789 cr. received since April 24, 2020, slightly more than half of this amount has been received from securities rated â€œAâ€, followed by securities rated â€œAAâ€. Much of this cash has been generated from securities which were unlisted, or where FT was a majority holder.

Most importantly, all of this cash has been received without any secondary market sale (active monetization) of the securities in the six schemes.

This points to the fact that the securities held in the funds can be monetised at fair value if given appropriate time under normal market conditions, Franklin Templeton said in a statement.

Franklin debt schemes collect Rs 669 cr in Jan 1-15 period; 65% cash back in low duration fund

Franklin Templeton Mutual Fund’s six debt funds have collected Rs 669 crore in the January 1 to 15 period, which is 45% less than Rs 1,213 crore it collected in the previous fortnight of Dec. 16 to 31, 2020. As much as Rs 617 crore was received as pre-payments.

So far, the 6 schemes received total cash flows of Rs 13,789 crore as of January 15, 2021 from maturities, pre-payments and coupon payments. More than half of this amount has been received from securities rated â€œAâ€. Much of this cash has been generated from securities which were unlisted, or where FT was a majority holder. The total inflows received across 6 schemes is over 40% higher than anticipated in the maturity profile published in April 2020.

The total cash available for the five cash positive schemes stands at Rs 9,190 crore, subject to fund running expenses. The total cash available with 5 schemes is lower than total cash flows because a portion was used to retire debt that the funds were forced to take in a bid to honour redemptions before April 24, 2020.

All the cash received by the six schemes are without any secondary market sale (active monetization) of the securities. This points to the fact that the securities held in the funds can be monetized at fair value if given appropriate time under normal market conditions.

Individually, Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund and Franklin India Short Term Income Plan have 63%, 50%, 41%, 26% and 9% of their respective AUM in cash.

Borrowing levels in Franklin India Income Opportunities Fund currently stands at 6% of AUM, which is unchanged from last fortnight.

As you may be aware, some writ petitions were filed in the matter of winding up of six of Franklin fixed income schemes in April 2020. On December 3, 2020, the Honâ€™ble Supreme Court issued an interim order allowing the Trustee of Franklin Templeton to seek consent of the unitholders for the winding up of the six schemes under Regulation 18(15)(c) of the SEBI (Mutual Funds) Regulations 1996.

The unitholders consent vote took place from December 26 to December 28, 2020 followed by the Unitholders meet via video conference on December 29, 2020.

The result of the e-voting along with the report of the observer appointed by SEBI will be submitted to the Honâ€™ble Supreme court in a sealed envelope. Further steps will be taken as per the directions of the Honâ€™ble Supreme Court. The next hearing in this matter is expected to be held in the 3rd week of January 2021.

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Franklin debt schemes collect Rs 1,213 cr in Dec 16-31; 5th scheme turns cash-positive

Fortnightly collections of the 6 debt funds proposed to be wound up by Franklin Templeton MF almost quadrupled to Rs 1213 crore in Dec. 16 to 31 period, from Rs 330 crore in Nov. 28 to Dec. 15 phase.

So far, the 6 schemes received total cash flows of Rs 13,120 crore as of December 31, 2020 from maturities, pre-payments and coupon payments.

Franklin India Short Term Income Plan (FISTIP) is the latest scheme to turn cash positive. The total cash available for the five cash positive schemes stands at Rs 8,527 crore, subject to fund running expenses. The total cash available with 5 schemes is lower than total cash flows because a portion was used to retire debt that the funds were forced to take in a bid to honour redemptions.

Individually, Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund and Franklin India Short Term Income Plan have 52%, 49%, 41%, 23% and 8% of their respective AUM in cash.

Borrowing levels in Franklin India Income Opportunities Fund continue to come down steadily and currently stands at 6% of its AUM.

Please note that the Honâ€™ble Supreme Court permitted the Trustee of Franklin Templeton Mutual Fund to seek consent of the unitholders for the winding up of the six schemes under Regulation 18(15)(c) of SEBI (Mutual Funds) Regulations, 1996.

Accordingly, the Trustee conducted the e-voting for the same from 26-28 December 2020 followed by a unitholder meet on 29 December 2020. As directed by the Apex Court, redemptions in these schemes will continue to be suspended till the date of the next hearing scheduled in the third week of January 2021.

As per the directions of the Honâ€™ble Supreme Court, on December 18, 2020, SEBI appointed T. S. Krishnamurthy, former Chief Election Commissioner of India, as observer for the e-voting taking place on December 26-28,2020 and â€˜Unitholdersâ€™ meetingsâ€™ scheduled on December 29, 2020, for the six schemes under winding up.

Franklin’s 6 debt funds get Rs 330 cr between Nov 28 to Dec 15; total collection nears 12,000 cr

As the 6 fixed income schemes of Franklin MF inch towards winding up, the half a dozen funds have collected Rs 330 crore from maturities, pre-payments, and coupon payments during the period November 28 to December. This fortnightly amount is lower compared to the preceding period. During Nov 28-Dec 15 period, 36% of the money came in as pre-payments, indicating the strength of the borrowers who even in a Covid-19 affected economy are repaying debt earlier than expected. Read on to know more.

Cash stash

The 6 schemes have received total cash flows of Rs 11,907 crore as of December 15, 2020 from maturities, pre-payments, and coupon payments since April 24, 2020.

Over the latest fortnight (November 28 â€“ December 15), the 6 schemes received Rs 330 crore, of which Rs.118 cr was as pre-payments. The pre-payments should assuage some worries of investors about the portfolio health of the six embattled debt funds.

The cash available as of December 15, 2020 stands at Rs 7,488 crore for the four cash positive schemes, subject to fund running expenses. The four loan-free schemes are Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, and Franklin India Credit Risk Fund.

Scheme level scan

Individually, Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, and Franklin India Credit Risk Fund have 49%, 48%, 34%, and 16% of their respective AUM (assets under management) in cash.

Borrowing levels in Franklin India Short Term Income Plan and Franklin India Income Opportunities Fund continue to come down steadily and currently stands at 1% and 16% of their respective AUM. These two schemes can return monies to investors only after paying all the obligations/ liabilities towards borrowings/ expenses/provisions.Â Â
Franklin India Short Term Income Plan is expected to be the 5th scheme to attain cash-positive status soon, as borrowing levels have come down to just Rs 43 crore from Rs 943 crore.

Winding-up process

The Supreme Court permitted the Trustee of Franklin Templeton Mutual Fund to seek the consent of the unitholders for the winding up of the six schemes. The Trustee has issued a notice dated 6 December 2020 for seeking the consent of unitholders. The e-voting for the same will held from 26-28 December 2020 followed by a unitholder meet on 29 December 2020.

Redemptions will continue to be suspended till the date of the next hearing scheduled in the third week of January 2021. We believe that the order issued by the Supreme Court will be helpful in ensuring orderly monetization and distribution of scheme assets, Franklin Templeton MF said.

Franklin case: Redemptions stayed till 3rd week of Jan, observer to monitor voting, result in sealed envelope

Even as the Trustee of Franklin Templeton Mutual Fund in India prepared to approach unitholders to seek consent for the orderly winding up of the six fixed income schemes, the Supreme Court in an interim order has provided further clarity on how the process will be carried on.

According to Sanjay Sapre, President, Franklin Templeton Asset Management (India), as per the interim order, the redemptions continue to be stayed till the date of the next hearing scheduled in the third week of January 2021.

Redemptions being stayed till 3rd week of January means that no money can be redeemed by the unitholders of the six Franklin debt schemes till that date. This is important because previously there was an understanding that if the majority voted against winding up, the six schemes would be required to reopen immediately and cater to redemptions. In essence, the staying of redemptions means that even after the voting is done on Dec. 28, no redemptions can be done for a minimum of three weeks.

“SEBI will appoint an observer to monitor the voting process under regulation 18(15) (c). The voting results and the report of the observer will be submitted to the Honâ€™ble Supreme Court in a sealed envelope,” Sapre said.

With a court-appointed observer in place, the voting process for seeking consent will be done under strict compliance to apex court norms. Since the Supreme Court has asked the observer to share the report and voting results in a sealed envelope, this could mean that the court will take a call on voting results. Do note that Franklin Trustee had appointed J. Sagar Associates, a reputed law firm, as the scrutiniser to monitor the e-voting process.

These developments assume significance because if a majority of unitholders vote ‘NO’, then there is a fear that a rush of redemptions could be precipitated, forcing a distress sale of the portfolio securities and the resultant reduction in the net asset value (NAV) of the schemes and substantial losses for unitholders.

Way forward

Franklin will continue to proceed with the next steps to seek unitholder consent for the winding up of the six schemes under regulation 18(15)(c) of SEBI (Mutual Fund) Regulation 1996. The schemes are Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, and Franklin India Income Opportunities Fund.

In order to ensure maximum participation, the process of seeking unitholderâ€™ consent will be through an â€œElectronic Voteâ€ followed by a meeting through video conference. The Portal will remain open for voting from 09:00 a.m. (IST) on December 26, 2020 till 06:00 p.m. (IST) on December 28, 2020. The electronic voting / e-voting facility will be available at https://evoting.kfintech.com

This will be followed by the Unitholders meeting through Video Conference on December 29, 2020. Unitholders who have not voted previously and are attending the Unitholders meet will be allowed to vote during the time of the meeting.

Over the next few days, unitholders will receive the user id and password from KFin Technologies on their registered email address.

The cash available (for distribution) as of November 27, 2020 stands at Rs 7,226 crore for the four cash positive schemes, subject to fund running expenses.

As of date, there are four cash positive schemes. Individually, Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund and Franklin India Credit Risk Fund have 48%, 46%, 33% and 14% of their respective AUM in cash right now.
Borrowing levels in Franklin India Short Term Income Plan at Rs 943 crore or 17% of AUM and Franklin India Income Opportunities Fund at Rs 497 crore or 29% of AUM continue to come down, but they are not cash positive yet.
In fact, the absolute borrowing amount for both the schemes has remained constant since October 29. Each scheme can return monies to investors only after paying all the obligations/ liabilities towards borrowings/ expenses/provisions.

Franklin MF voting: Here are 7 things unitholders must know

As expected, the Trustee of Franklin Templeton Mutual Fund in India has approached unitholders to seek consent for the orderly winding up of the six fixed income schemes. This is as per the interim order issued by the Honâ€™ble Supreme Court on December 3, 2020.

When

The Trustee has partnered with â€™K Fintechâ€˜ for the electronic voting process and the unitholders meeting to seek unitholdersâ€™ consent.

Voting will take place from December 26â€“28, 2020 and the meeting of unitholders of relevant Schemes on December 29, 2020.

Why

The objective of the voting exercise is to seek, by â€˜simple majorityâ€™, consent of the Unitholders for the decision made by the Trustee to wind up the six fixed income schemes in an orderly fashion.

Consent will be sought from unitholders for each scheme separately.

What to do

The Trustee believes that it will be beneficial for Unitholders to vote â€˜YESâ€™ to the proposed resolution.

The Trustee is of the view that an orderly liquidation would maximize the value of the portfolio assets for distribution of cash to Unitholders on a pro-rata basis.

“There is a greater likelihood of realizing fair value from the investments within a reasonable period of time by the person authorized under Regulation 41 in an orderly winding up,” the fund-house says.

What happens if you vote ‘No’

If the decision to wind up the debt schemes in an orderly manner is not implemented, it could precipitate a rush of redemptions.

This rush would force a distress sale of the portfolio securities, likely resulting in a reduction in the net asset value (NAV) of the Schemes and substantial losses for Unitholders.

What happens if majority votes for ‘YES’

If a simple majority of unitholders vote â€œYesâ€ in favour of the orderly winding up. This will mean opting for an orderly winding up of the schemes with a potential to realize fair value from the assets.

This will allow the Trustee to proceed with the next step which is to seek further approval from unitholders for appointment of a person under regulation 41(1) to carry out the winding up.

Will it take long to get money back

An orderly winding up does not mean a lengthy wait for return of monies. Once Franklin receives a majority â€˜Yesâ€™ vote in favour of the orderly winding up of the schemes, the second vote to seek approval of the unitholders will come.

The schemes will then be able to distribute the cash already available in the schemes. Individually, Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund and Franklin India Credit Risk Fund have 48%, 46%, 33% and 14% of their respective AUM in cash right now. Franklin India Short Term Income Plan and Franklin India Income Opportunities Fund can’t return cash immediately as they are still under debt.

Franklin MF will also make further payments to unitholders at regular intervals as the schemes receive cash-flows from monetization of assets.

Payment and monetisation of securities

Of the Rs 11,576 crore received by the 6 funds since April 24, 2020, nearly half of this amount has been received from securities rated â€˜Aâ€™, followed by securities rated â€™AAâ€™.

Many of these securities were unlisted, and in many instances, Franklin Templeton Schemes were majority investors.

Fund-house officials say many (debt) issuers are approaching them with offers of prepayment, and with markets slowly returning to normalcy, secondary market interest for many of the securities held in the scheme portfolios is also increasing.

It is being hoped that the process of monetizing scheme assets can be sped up once the fund-house has unitholdersâ€™ consent for an orderly winding up.

Monetizing a large amount of portfolio assets over a period of time in an orderly manner will result in better outcomes for unitholders as compared to being forced to sell the same securities as a â€˜distress saleâ€™ in a short period of time.

Franklin case: Supreme Court allows to seek consent of unit holders on winding up 6 schemes

The Supreme Court on Thursday permitted Franklin Templeton trustees to call a meeting of its unit holders to seek their consent for the closure of 6 debt funds, even as requests of redemption from investors remain suspended.

Steps to call the meeting will have to be taken within a period of one week.

“The Honâ€™ble Supreme Court on December 3, 2020 issued an interim order allowing the Trustee of Franklin Templeton to seek consent of the unitholders for the winding up of the six schemes u/r 18(15)(c) of SEBI (Mutual Fund) Regulation 1996. Redemptions will continue to be suspended till further notification,” said a Franklin Templeton spokesperson.

Interestingly, according to Bar & Bench, which tweeted the SC proceedings live, the apex court asked SEBI that if they knew people will withdraw money like anything during COVID, why didn’t SEBI do something like RBI? In response, Advocate Pratap Venugopal for SEBI said that the regulator doesn’t have any powers in the winding up process.

Franklin Templeton MF said it believes that the Supreme Court order will be helpful in ensuring orderly monetization and distribution of scheme assets.

The fund-house is expected to issue the notice for seeking consent of unitholders shortly. It hoped to commence distribution of investment proceeds at the earliest. The cash available (for distribution) as of November 27, 2020 stands at Rs 7,226 crore for the four cash positive schemes, subject to fund running expenses.

Franklin Templeton MF had approached the apex court against the Karnataka High Courtâ€™s decision according to which prior consent of unit holders was required to close the six debt fund schemes during the pandemic. The closure was challenged due to the fact that no consent was taken from investors. But according to Franklin Templeton, it was under the impression that no prior consent or approval was required from investors.

The six schemes are Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Short Term Income Plan, Franklin India Credit Risk Fund, Franklin India Dynamic Accrual Fund and Franklin India Income Opportunities Fund.

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