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Franklin Templeton (FT) Update:
Lot of investors keep messaging me asking abt
a) Status of Court Hearing
b) Status of the 6 schemes that are being wound down
c) Four schemes being +ve. What does it mean?
So am starting this thread, which I will keep updating regularly
(1/n)
Lot of investors keep messaging me asking abt
a) Status of Court Hearing
b) Status of the 6 schemes that are being wound down
c) Four schemes being +ve. What does it mean?
So am starting this thread, which I will keep updating regularly
(1/n)
First : What is status of Court Hearings?
Court hearings are proceeding on a daily basis
Latest update is SEBI has agreed to give the court
a) Copy of Forensic report done of FT
b) Response of FT on this report
SEBI wants this to be confidential report. Court will decide
(2/n)
Court hearings are proceeding on a daily basis
Latest update is SEBI has agreed to give the court
a) Copy of Forensic report done of FT
b) Response of FT on this report
SEBI wants this to be confidential report. Court will decide
(2/n)
Court Update:
All parties except FT have completed their first set of arguments and responses. FT will give their responses also soon to the Court
With daily hearings, we do expect that by end of Sept or early Oct, there will be a conclusive decision for investors
(3/n)
All parties except FT have completed their first set of arguments and responses. FT will give their responses also soon to the Court
With daily hearings, we do expect that by end of Sept or early Oct, there will be a conclusive decision for investors
(3/n)
Q; What is meaning of 4 schemes have turned +ve. Isn't that a great thing?
Ans:
a) Schemes turning +ve means that FT has repaid borrowings in the scheme
b) All schemes, usually always are +ve. Borrowing is always a temporary measure
So it is return to normal, not great!
(4/n)
Ans:
a) Schemes turning +ve means that FT has repaid borrowings in the scheme
b) All schemes, usually always are +ve. Borrowing is always a temporary measure
So it is return to normal, not great!
(4/n)
Q: But there are so much cash inflows in the schemes - some thousands of crores? Isn't that great?
Ans:
a) These are normal maturities that were due
b) That money coming is as expected and would have come even if schemes were not wound up.
It is again normal, not great
(5/n)
Ans:
a) These are normal maturities that were due
b) That money coming is as expected and would have come even if schemes were not wound up.
It is again normal, not great
(5/n)
Q: C'mon, you are underplaying this great achievement of money being returned to FT?
Ans: No.
If you were to track any other scheme - of any other MF - especially Ultra Short of any other MF, you will see similar or better inflows
Seriously, this is just normal
(6/n)
Ans: No.
If you were to track any other scheme - of any other MF - especially Ultra Short of any other MF, you will see similar or better inflows
Seriously, this is just normal
(6/n)
Q: But why are these cash inflows not being returned to investors?
Ans: FT has taken a view that they need a unitholder vote to return these monies. They are hence holding it on ur behalf
They shud have clarified with SEBI/Court and pronto returned this to investors
(7/n)
Ans: FT has taken a view that they need a unitholder vote to return these monies. They are hence holding it on ur behalf
They shud have clarified with SEBI/Court and pronto returned this to investors
(7/n)
Q: Are the schemes listed as per the directive of SEBI?
Ans: FT is working on it for the last few months to comply with the listing of the schemes.
Hopefully they will be able to complete it before the court hearing ends
(8/n)
Ans: FT is working on it for the last few months to comply with the listing of the schemes.
Hopefully they will be able to complete it before the court hearing ends
(8/n)
Q: Wait, u said they are not returning money, but I did get some money of Vod?
Ans: It is a peculiar set of regulations and I will try to explain here
a) There is a main scheme and a segregated portfolio
b) Both Main Scheme + Segregated portfolio are under winding up
(9/n)
Ans: It is a peculiar set of regulations and I will try to explain here
a) There is a main scheme and a segregated portfolio
b) Both Main Scheme + Segregated portfolio are under winding up
(9/n)
c) Segregated portfolio - though under winding up - can pay money to u. Doesn't need any unitholder vote
d) Main scheme - is now become fully similar to segregated portfolio i.e. it cannot do any purchases or redemptions
But Main scheme cannot pay back money to u
(10/n)
d) Main scheme - is now become fully similar to segregated portfolio i.e. it cannot do any purchases or redemptions
But Main scheme cannot pay back money to u
(10/n)
It's an anomaly of regulations or an incorrect interpretation of regulations
That under similar circumstances - main scheme is constricted to pay money back but segregated portfolio (which is also under winding up) is paying money back
Court will decide on it soon!
(11/n)
That under similar circumstances - main scheme is constricted to pay money back but segregated portfolio (which is also under winding up) is paying money back
Court will decide on it soon!
(11/n)
I will keep updating this thread as and when there are material developments
If u have any Qs, pls feel free to keep asking here in the thread and I will try to answer
*** End ***
(12/n)
If u have any Qs, pls feel free to keep asking here in the thread and I will try to answer
*** End ***
(12/n)
