The mutual fund informed the distributors in a note: No effect on NAV

-


- Franklin Templeton defaults: Essel Group fails to meet Rs 215 crore NCDs maturity

- Shares of Zee Entertainment Enterprises, Dish TV India, Unlisted EIL and Personal Guarantee of Subhash Chandra for NCDs

(Commercial Representative) Mumbai Ta. May 23, 2020, Saturday


Distributors have been informed in a note that the debt-debt issued by Franklin Templeton Mutual Fund Essel Infraprojects Limited has defaulted. The note states that Issuer-Essel failed to fulfill its maturity obligation at maturity.

According to the information obtained in this case, the mortgage value of this debt-debt is much higher than the value of the debt they have. So that these schemes have no effect on the NAV. The paper-debt is in the form of non-convertible debentures (NCDs), backed by shares of Zee Entertainment Enterprises, Dish TV India, Unlisted EIL and a personal guarantee from Subhash Chandra, Franklin's note said. It is not clear if Franklin Templeton AMC has tried to sell any of these mortgages or to exceed Chandra's personal guarantee.

Zee Entertainment's share price has fallen by Rs 20 to 5 per cent to Rs 15 in the last one year. While the share price of Dish TV has come down from Rs 30 to Rs 3.5. The Essel Group's paper-debt has a maturity value of Rs 412 crore, but Franklin Templeton has put the value at only Rs 3 crore in its book at present. Franklin's four skimo-dynamic acrylics, credit risk, short-term income plan and low duration are 0.15% to 1.5%. The note further states that the Legal Counsel has been appointed by Franklin and is actively considering taking all necessary steps to ensure maximum value can be recovered.

Other mutual funds-AMCs that have invested in Essel Group's paper in 2013 include HDFC, Kotak, ICICI Prudential and Aditya Birla Sun Life Mutual Fund. When Invesco Oppenheimer bought equity holdings in the company for Rs 3 crore in September 2016, some fund houses like ICICI Prudential AMC, Kotak AMC and HDFC AMC recovered their money and other fund houses recovered some of their money.


However, further defaults have hit the industry. Aditya Birla Sun Life Asset Management Company was the victim of a similar credit incident which was issued in November 2016 by Adilink Infra and Multi Trading Limited. It may be mentioned here that Franklin Templeton Mutual Fund has appointed Kotak Mahindra Bank as a consultant for the process of closing these six debt schemes. SEBI has also allowed investors to exit the scheme by allowing them to be listed on exchanges.

Comments

Post a Comment

Popular posts from this blog

Due to the ban, employment and economic activity declined by two to three percent

-
Image
New delhi date. October 7, 2019, Monday A new study has found that employment and economic activity have declined by two to three percent due to the ban. A similar situation has been observed in bank lending. The study found the decline to occur within two months of the notation announced on November 7. This is the first research on demineralization in which data on the effects of districts across India were collected. In addition to the districts, the effect of national level was also studied. Previous studies only examined the national level effect of demonitization. Thus, a full estimate of the overall effect is not known. As a result of the shortage of cash arising out of the blockade, the country's economic activity fell by approximately 8 percent in November-December 2 In the October-December period, bank credit has seen an impact of around two per cent. Cash pulls have impacted demand for a short period. The study found that there was a strong link between money and pro...
Read more

Information about soymilk and casein products

-
Image
- Industrial guidance - Dhiru Parekh Soymilk: Soybeans are converted to high-quality protein. So that high quality drinks can be made which can be easily digested. There is no difference between soymilk and cow's milk. So the conservative industries of milk processing are now using this milk to make yogurt and ice cream. Consumers also cannot tell the difference between ice cream made from cow's milk and from soy milk. Also, the production capacity of soy milk can be increased than that of cow's milk. And the price can be cheaper. Soybeans mainly contain two types of enzymes that are inactivated in the soymilk process. Leukoxidase that catalyzes the oxidation of fatty acids. And enzymes like pepsin, trypepsin are included in it. Which helps in digesting protein. Soyamilk powder manufacturing process: This is an electric pre-heater system. which basically allows fluid to flow easily in a stationless tube under low-voltages. which absorbs the energy flowing through the Ja...
Read more

The brokerage firm objected to SEBI's new proposal regarding Algo Trading

-
Image
MUMBAI: Brokerage firms and fintech companies have objected to market regulator SEBI's discussion paper considering all stock trading orders issued through Application Programming Interface (API) as separate trading, saying it could adversely affect the growth of such trading from India. Algo trading is considered to be an automatic buying-selling system based on algorithms. SEBI has recently said in a discussion paper that it would create a framework for regulating Algo trading by retail investors. A senior official of a brokerage firm said that monitoring of Algo trading is a need of the hour, but such an attempt could hamper the growth of Sebi Algo trading. He added that if the suggestions made in the SEBI discussion paper were implemented, it would be difficult for brokers to make the API available. About 70% of the daily trading volume in Indian stock markets is transacted through advanced forms of algo trading. Algo Trading came to India in the year 2006, but then only se...
Read more