Solution for Franklin Templeton mutual fund
unitholders
Article
published as on Friday, 29th January, 2021 at 9:00 p.m.
As unitholder and investor of various schemes of this
mutual fund company we know that in April 2020 franklin Templeton announced
winding of its 6 debt schemes.
In May ,2020 SEBI gave permission to the franklin Templeton
mutual fund to list their schemes on stock exchange, what happened after that?
As it was winding up its schemes in the month of May SEBI
gave the permission of listing its units on stock exchange, so what happened now?
One concern raised that if it were to be listed on
stock exchanges than due to selling pressure investors won’t be able to realize
the true value of investment.
Even that was just a concern what really happened is
court cases and investor complaints. Now as the mutual fund AMC is stuck in
court cases it cannot do anything, only wait for next hearing date...
And even after so many dates what action has been
taken in interest of investors?
Next hearing is on 1st February in Supreme court
regarding irregularities in voting procedure.
Only ‘Tarikh pe Tarikh’ is going on.
Those investors who filled complaint in court may have
done with good intention but due to them thousand and lacs of other investors are
suffering with their money being stuck.
This is the case of apne pair pe kulhadi marna
On one side we have such investors who have created
road block not only for themselves but for thousands of other investors and on
other side we have franklin Templeton.
At least being a responsible mutual fund they should
have ensured that investors don’t suffer and have their schemes listed in stock
exchanges and give guarantee of buying units From open market if price trades below
5% of NAV in that manner it would have provided liquidity and relief to
unitholder and also ensure that those in need of fund don’t suffer huge loss.
(after all they have 8 to 9% yielding instruments in their
mutual schemes so it would be beneficial for the franklin Templeton also to
invest in them)
To conclude I would say that even if SEBI has to
intervene, SEBI should intervene and make sure to provide liquidity support to
franklin Templeton investors...
Money is safe in all these mutual funds schemes but if
it’s not accessible its useless...
Just like medicine provided after a patient dies is
useless
Liquidity not provided to investors on time is also
useless....
I have also written a mail to franklin Templeton with
a prayer of listing units of their schemes on stock exchanges so investors can
benefit with the liquidity, this is the best solution as on date.
I would end saying
Kabhi pyaase ko pani...
pilaya nahi.......
baad aamrut pilane se...
Kya faida?
Update:
The judgement
by supreme court is out and they have instructed Franklin Templeton to
distribute the surplus cash in each of their schemes within 20 days.
So, a major
relief is that investors are expected to get at least part payment before 21st
February, 2021.
Also note
for investor: Investors need to be cautious articles relating
to “60% haircut” given by CFMA (Chennai Financial Markets and
Accountability) several leading news websites such as times of India
and Moneylife are publishing their opinions and quoting
them this spreads misinformation and panic among investors.
Readers take
these opinions as facts and panic, CFMA has not explained the logic behind 60%
haircut and neither replied to my mail asking for logic behind this.
Investors
should visit for website of franklin
Templeton for detailed information on maturity of investments scheme wise.
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