Has there been any panic impact of the winding up of six Templeton schemes on the other mutual funds; especially debt funds?

One outcome of the Franklin Templeton closure of 6 debt funds and the Yes Bank fiasco has been that mutual funds houses are aggressively liquidating their holdings in perpetual bonds issued by banks. The sell-off has sent yields on these paper surging. In fact, funds were found to be selling out of additional tier-1 bonds of public sector banks in the secondary market at steep discounts. Perpetual bonds issued by Union Bank, Canara Bank and Bank of Baroda were sold nearly 100-350 basis points above their coupon, clearly showing their desperation to get out of any type of dubious form of debt holdings. When mutual funds have to redeem, they need to sell the bonds and this trend is being accentuated as credit funds are seeing outflows. Despite the RBI opening the Rs.50,000 crore window for mutual funds, they have not been too keen to participate.