Almost three months after JP Morgan AMC imposed restriction on redemption from two of its schemes that had an aggregate exposure of close to Rs 200 crore in the illiquid bonds of Amtek Auto, the fund house on Monday allowed its investors to redeem their units with effect from December 7, 2015.
The fund house said that the AMC has sold the segregated assets (Amtek bonds) in full on December 5, 2015, and it has resulted in realisation of the segregated asset thereby providing liquidity in relation to the segregated asset. It, however, did not disclose the name of the buyer of assets. “Holders of Units-Segregated Asset may now place redemption /switch out requests to redeem/ switch out of the Units — Segregated Asset they hold with effect from December 7,” said the fund house.
The fund house, however, said that while applying for redemption, the holders of the units-segregated asset should specifically mention that the redemption/switch-out requests are for the “JPMorgan India Treasury Fund — Segregated Asset — Growth Option” or “JPMorgan India Short
Term Income Fund — Segregated Asset — Growth Option” as applicable.
The crisis came to the fore after Amtek Auto defaulted on its bonds, in which these two funds had invested an aggregate of around Rs 200 crore.