On Thursday SEBI as a capital market regulator asked Franklin Templeton Mutual Fund to return the funds of investors as early as possible after closing 6 loan schemes of Rs 25,000 crore. SEBI said that investors are still investing with high-risk and with high- risk debt securities. Sebi said this is being done despite reviewing the regulatory framework and amendments to protect the interests of investors.
According to the news given to PTI, SEBI said that some mutual fund schemes are still investing in high-risk and opaque debt securities.
SEBI said that this is being done despite the regulatory framework being reviewed and amended to protect the interests of investors. In a statement, the regulator said that it has advised Franklin Templeton Mutual Fund to work on the early return of investors’ money in case of closure of six loan schemes.
Franklin Templeton Mutual Funds Statement
Franklin Templeton MF said a few days ago that the Covid-19 crisis and the lockdown of the Indian economy led to a dramatic and persistent cash fall in some sections of the corporate bond market, making it extremely important to deal with it. Especially fixed income sections are constantly facing problems to withdraw in such situations.
Before this, the Association of Mutual Fund Industry ‘Association of Mutual Funds in India’ (AMFI) also assured investors that most fixed income mutual fund assets have better debt quality securities. Investments have been made in these schemes and these have sufficient cash to ensure better operation.
6 Mutual Funds schemes closed
- Franklin India Templeton Low Duration Fund
- Franklin India Templeton Income Opportunity Fund
- Franklin India Templeton Short Bond Fund
- Franklin India Templeton Credit Risk Fund
- Franklin India Templeton Short Term Income Plan
- Franklin India Templeton Dynamic Acquired Fund
In a statement, the regulator said it has advised Franklin Templeton Mutual Fund to focus on returning investors’ funds early in the context of the closure of six loan schemes. Explain that due to the Covid-19 pandemic, the country’s leading mutual fund house Franklin Templeton India has closed its 6 debt fund schemes due to losses. Due to this, about 28 thousand crores of investors have been stuck.
The central bank announced a special liquidity facility of Rs 50,000 crore on 27 April 2020 to help the mutual fund industry deal with the crisis. Apart from this, the Reserve Bank of India (RBI) has also said that the regulatory benefits declared under the Special Liquidity Facility (SLF-MF) for mutual funds will be given to all banks, whether RBI receives funds or its resources under the scheme.
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