P Chidambaram: Franklin Templeton’s decision you wind up 6 mutual funds is a matter of grave concern to investors and the industry

[resjudicata]

@montse811 I don't see why you are being downvoted to paataal.
Resonates with what I think as well. Here, take my upvote.

 

[heliumskylark]

@padraig_leigheanach The thing is RBI already extended a 20% credit line to all AMCs to tide over the liquidity crisis but extending even more credit brings with it a lot of risks. Let's say RBI offers a 80% credit line to meet redemption. Funds will keep borrowing money to pay out investors and will be left with junk bonds. What happens when those bonds are not paid out? How will AMC repay the loan?

 

[cardvanguard]

@padraig_leigheanach http://ofmoneyandmoney.com/what-has-happened-to-franklin/

 

[debbiezaina]

@padraig_leigheanach Idiotic. On any given day, government cannot be held responsible for derivatives, maybe actual equity or debt per se. But never derivatives.

 

[nischansr]

@debbiezaina Where did derivatives come into the picture?

 

[padraig_leigheanach]

@debbiezaina What derivatives?