What will a 'Yes' or 'No' vote mean for Franklin Templeton investors

If investors in the six Franklin Templeton schemes vote for reopening, they may have to take large haircuts

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Proponents of the 'no' vote believe the courts will force the fund house to pay investors based on a particular day's net asset value

Sanjay Kumar Singh New Delhi

4 min read Last Updated : Dec 10 2020 | 3:04 AM IST

As directed by the Supreme Court, unitholders in the six closed debt schemes of Franklin Templeton Mutual Fund will get to vote between December 26 and 28.

A 'yes' vote will mean the fund house will be allowed to undertake orderly winding-up of the schemes.

A 'no' vote will mean the schemes will reopen.

What a 'no' vote means

Most investors in the six schemes are likely to apply for redemption within a day or two of reopening.

Faced with huge redemption pressure, Franklin Templeton's fund managers will be forced to sell the debt papers held in these funds. Many

Topics : Franklin Templeton Mutual Funds Investments Franklin India Franklin Templeton Investments India