Kotak Mahindra Bank through its Debt Capital Markets team will work closely with Franklin Templeton Trustees, to assist with all portfolio actions in these six schemes.
According to the company, heightened redemptions after the lockdown led to increased concentration of unlisted bonds which were needed to be held until maturity.
AUM of credit risk fund category has been falling and the category has seen continuous outflows.
The liquidity facility will help avoid a one-off event snowballing into systemic risk
Brokerage firm Sharekhan has listed 16 debt fund which are high-quality short duration and corporate bond category schemes.
Investors are in a state of fear and shock but during such a crisis, causalities do happen and the credit risk of debt funds is a natural extension of a liquidity crisis.
A meeting with lenders is underway and the company has assured them that it has a ready buyer.
Franklin Templeton AMC has imposed restriction on investments by persons resident in Canada.