MUMBAI : Asset manager Franklin Templeton’s India unit is in the process of appointing an independent adviser to aid the winding-up of its six yield-oriented, managed credit funds.
The six schemes with total assets under management of ₹25,856 crore were shut down on 23 April owing to severe illiquidity and redemption pressures caused by the covid-19 pandemic.
Winding up a mutual fund scheme requires taking approvals from trustees, a majority of unit holders and the Securities and Exchange Board of India (Sebi), besides refunding money to unit holders.
Typically, the process involves the trustees calling for a meeting of unit holders to approve the winding-up by a simple majority and vote on any other necessary steps.