Franklin Templeton fund closure: MFs reach out to RBI, SEBI

Mutual fund houses reached out to the Reserve Bank of India (RBI) and market regulator Securities and Exchange Board of India over the weekend after concerns emerged over the closing down of Franklin Templeton's funds last week, sources told CNBC-TV18.

However, there is no clarity on how and if the central bank will respond to them, the sources said.

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Franklin Templeton Mutual Fund on Thursday said it was closing down six credit funds due to liquidity issues amid the coronavirus crisis, leading to fears of redemptions among the market players.

Also read: Franklin Templeton mess: A liquidity mishap or a series of wrong, aggressive bets?

The funds that will be shut are Franklin India Low Duration Fund, Ultra Short Bond Fund, Short Term Income Plan, Credit Risk Fund, Dynamic Accrual Fund, Income Opportunities Fund, the company said in a statement.