InvestorQ : Now that the Franklin Templeton investors have voted to wind up the six schemes, what does it mean and what are the next steps now?
Priyanka N made post

Now that the Franklin Templeton investors have voted to wind up the six schemes, what does it mean and what are the next steps now?

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Neelam Naik answered.
2 months ago
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Here are some key points that you need to know about the Franklin Templeton investors vote and the next steps.

· You are absolutely right that Franklin Templeton investors have given the go ahead and voted overwhelmingly in favour of winding up the six funds

· In fact, a big majority of 91% of the investors have strongly voted in favour of the fund being wound up and the proceeds being distributed to unit holders

· It may be recollected that Templeton AMC had summarily shut redemptions in April last year after six of their funds were stuck in bad and illiquid investments.

· The issue has been hanging fire for the last 9 months with close to Rs.28,000 crore payable to the unit holders of these six funds

· According to the latest disclosure by the fund, it has collected close to Rs.13,400 crore in these funds and four out of the six funds are cash positive.

· However, there would be borrowings which need to be repaid before the redemption amount can be determined and also fund administration expenses to be debited.

· It is likely that the net amount of Rs.9500 crore would be finally available and the unit holders would still end up with a haircut of over 60%.

· The Court convenes later this month wherein it will lay out the process for winding up the six funds of FT.

The Court will decide on the process, the timelines and the accountability of the Franklin Templeton AMC in the entire process.
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