Why has there been another default at the Future group?

Yes that is correct. There has been a default by one of the group companies of the Future group called Rivaaz Trading Ventures. This is one of the promoter group companies of the Biyanis and this company has defaulted just 2 days after the RIL deal was signed.

Now, ironically, these were NCDs that were issued by Rivaaz Trading to Franklin Templeton Mutual Fund. These NCDs issued by Rivaaz Trading Ventures, were part of the portfolio of four out of the six funds that Templeton had frozen in late April this year.

For Templeton this creates another tough situation. A default would mean that they would have do an 100% write-off of the bond value and that could substantially impact the residual NAV value that the existing unit holders of the six schemes will get.

The default is surprising but one can argue that the deal was with the Future group businesses and this default was by the Future group promoter entities, which are not covered under the deal. Future Group has not made any statement on the subject.