Sebi gives exit option to Franklin Templeton's mutual fund investors

Experts say Sebi's move could also help in creating a market, where investors can get some access to liquidity even in stressed debt portfolios

The Securities and Exchange Board of India (Sebi) on Wednesday mandated listing of units of schemes being wound up, giving investors of schemes in Franklin Templeton Mutual Fund (FTMF) an alternative route to access liquidity if they don’t wish to wait for receipts from portfolio investments.

“However, pursuant to listing, trading on the stock exchange mechanism will not be mandatory for investors. Rather, if they so desire, they may avail of an optional channel of exit provided to them,” the markets regulator said in a circular.

Experts say such a route is unlikely to be accessed by all investors, as