The Supreme Court has given its approval to the proposal submitted by SBI Mutual Fund to distribute ₹9,122 crore to Franklin Templeton investors. SBI MF had filed its distribution mechanism in consultation with the SEBI and Franklin Templeton Mutual Fund (FTMF). The case has now been posted for hearing on February 17 to consider other aspects of the appeal.
The apex court has directed the disbursal of cash as it was lying ideal with the fund house, but the hearing with regard to FTMF’s proposal over winding up of the debt schemes will continue.
FTMF has proposed winding up of these debt schemes which held around ₹30,000 crore of 3.15 lakh investors. But it has already halted redemptions in the schemes for nearly nine months now. FTMF’s reasoning has been that its schemes were affected due to Covid-19 crisis and the SC will have to decide if this is a justifiable ground to propose closure of the schemes .