Franklin Templeton Mutual Fund: Chidambaram urges Centre to act promptly

New Delhi, Apr 25: Senior Congress leader P Chidambaram on Saturday said that Franklin Templeton Mutual Fund's decision to wind up six debt schemes is a matter of "grave concern" to investors, mutual fund industry and financial markets.

In an unprecedented move, Franklin Templeton Mutual Fund voluntarily decided to wind up its six debt schemes citing redemption pressure and lack of liquidity in bond markets due to the coronavirus pandemic.

It can be seen that this is the first such instance when a fund house is shutting its schemes because of the coronavirus-related situation.

In a statement, Chidambaram said, "Franklin Templeton Mutual Fund's decision to wind up six debt schemes is a matter of grave concern to the investors, mutual fund industry and the financial markets. I recall that a similar situation arose in the first week of October 2008 when mutual funds faced liquidity stress."

(With inputs from agencies)