MUMBAI: Franklin Templeton India is in the process of appointing an independent advisor to wind up six of its yield-oriented managed credit funds, said a company spokesperson.
The six schemes, with total assets under management (AUM) of ₹25,856 crore, were shut down on 23 April owing to severe illiquidity and redemption pressures caused by the covid-19 pandemic.
According to market regulator Securities and Exchange Board of India (Sebi), the winding up process has legal and operational challenges such as taking trustee approvals, getting clearance from majority of unit holders, Sebi nod and refunding the unit holders.