Franklin Templeton winding-up of 2020

Sat, 16 May 2026 00:00:00 +0000

The Franklin Templeton winding-up of 2020 refers to the decision by Franklin Templeton Asset Management (India) Private Limited, on 23 April 2020, to wind up six open-ended debt mutual fund schemes with combined assets under management of approximately Rs 28,000 crore and over 3 lakh investor folios. The closure was attributed to severe liquidity stress in the Indian corporate bond market following the COVID-19 pandemic and the subsequent national lockdown, compounded by pre-existing credit stress in the underlying portfolios from the 2018 IL&FS and 2019 DHFL credit events. The Franklin Templeton episode is the largest involuntary closure of open-ended mutual fund schemes in Indian mutual fund history and produced significant judicial proceedings up to the Supreme Court, sustained SEBI enforcement action, and a substantial package of post-event regulatory reforms that reshaped the Indian debt mutual fund framework.

Supreme Court on WebNotes

Franklin Templeton winding-up of 2020