This document summarizes the views of FTMF on winding up fixed term mutual fund schemes and the response from Chennai Financial Markets and Accountability (CFMA). CFMA argues that FTMF is creating fear among unitholders and their views cannot be trusted given conflicts of interest. CFMA urges unitholders to vote "no" on winding up the schemes, as the matter is now before the Supreme Court which can ensure a fair process. CFMA also questions FTMF's claims about risks of distress sales and impacts on the bond market, given the illiquid nature of many of their investments. Overall, CFMA advises unitholders not to trust FTMF and to seek a cleaner solution under the

1. CHENNAI FINANCIAL MARKETS AND ACCOUNTABILITY
(Registration No. 3482019 under Tamilnadu Societies Registration Act, 1975)
GA, Florentina 43, 1st
Main Road, Gandhinagar, Adyar, Chennai - 600020, Tamil Nadu, India.
Telephone: 044 79652180 | Email: contact@cfma.in | Website: www.cfma.in
“UNMASK FTMF” by pressing “NO VOTE” on winding up
NOTICE FOR E-VOTING AND MEETING OF UNITHOLDERS; VIEWS OF FTMF AND RESPONSE OF
“CFMA” IN THE INTEREST OF UNITHOLDERS
Sr. No. FTMF Views on Notice for E-Voting CFMA Views
1 The Trustee is of the view that if the
decision to wind up the Scheme in an
orderly manner is not implemented, it
would precipitate a rush of redemptions,
which would force a distress sale of the
portfolio securities, likely resulting in a
reduction in the net asset value (NAV) of
the Scheme and substantial losses for
unitholders.
FTMF has redeemed large values since October 2019 till
April 23, 2020 and has selectively allowed unitholders to
exit by selling good and liquid securities or by excessive
borrowing.
Now when FTMF is left with illiquid securities, it is
creating fear psychosis for unitholders to approve
winding up for more calibrated redemption.
However, FTMF is not committing the following:
1. How much will they pay unitholders.
2. In how much time will they pay.
3. If there is any loss then who will make good the loss.
4. The schemes have liquid cash in some but the
maximum is less than 50%.
5. There have been illiquid, unlisted, unrated and
unknown company investment in most schemes and
therefore it is not clear what amount of money they
will fetch whether in distress or calibrated.
However, poor investment decisions of FTMF should be
their responsibility and so how is a unitholder
concerned. If there is any potential loss then it should
be borne by FTMF and why should unitholders bear the
loss.
2 It is also likely that such a large volume of
sale in a short period of time would
impact the bond market as a whole and
compound liquidity issues for securities
in the Scheme portfolio.
FTMF is creating fear psychosis by saying that sales of
FTMF Bonds will impact the entire market. It is not true
due to following reasons;
December 17, 2020 Unitholders Bulletin
December 17

2. CHENNAI FINANCIAL MARKETS AND ACCOUNTABILITY
(Registration No. 3482019 under Tamilnadu Societies Registration Act, 1975)
GA, Florentina 43, 1st
Main Road, Gandhinagar, Adyar, Chennai - 600020, Tamil Nadu, India.
Telephone: 044 79652180 | Email: contact@cfma.in | Website: www.cfma.in
1. As FTMF claims that out of Rs 28,000 crore of
outstanding, about Rs 11,576 has been received by
way of maturities, coupons and pre-payments which
is 41% of entire outstanding. Therefore, it is wrong
that entire holding has to be sold. It is a lie.
2. The investment by FTMF are bespoke, unlisted,
illiquid and poorly rated companies due to which
these transactions will not happen in market and so
market confidence will not be shaken or affected. It
is a lie.
3. If the investments are already in illiquid and unlisted
securities with high concentration then there is no
question of liquidity getting affected for the entire
market. These sales will be bilateral with the
investee company as no one in market will buy such
securities. So this too is a lie.
3 Further, if the Scheme is opened for
redemptions under these circumstances,
meeting redemption demand as they
come is likely to result in disorderly
distributions, besides significant losses
for Unitholders.
FTMF did exactly this since October 2019 until April 23,
2020 by letting large redemptions take place without
sounding all unitholders what was wrong in the scheme.
Now they are fearing that injustice will happen with
some.
A well-intentioned management will see that this
pressure is overcome and injustice is prevented through
a special mechanism approved by judicial or regulatory
approval. However, all this fear being expressed by
FTMF now has been created by FTMF due to illegal
decision taken by them.
4 Thus, in an orderly winding-up, there is a
greater likelihood of realizing fair value
from the investments within a
reasonable period of time by the person
authorized under Regulation 41
(Authorised Person).
FTMF wound up the scheme illegally and withdrew the
rights of unitholders which has caused this situation
now.
Worrying about orderly winding-up cannot be expected
from FTMF Trustees and so has to happen under the
Supervision or through a mechanism put in place by
Hon’ble Supreme Court.

3. CHENNAI FINANCIAL MARKETS AND ACCOUNTABILITY
(Registration No. 3482019 under Tamilnadu Societies Registration Act, 1975)
GA, Florentina 43, 1st
Main Road, Gandhinagar, Adyar, Chennai - 600020, Tamil Nadu, India.
Telephone: 044 79652180 | Email: contact@cfma.in | Website: www.cfma.in
5 Unitholders may note that a significant
portion of the scheme assets is held in
securities and the liquidity position of
each security, and consequently the
value realized may vary depending on the
time available to generate liquidity. An
orderly liquidation would obtain better
value for Unitholders.
This is a creation of FTMF, their KMP’s and their Trustees
that the securities of these 6 schemes are bespoke
investments, illiquid, concentrated in investment,
unlisted, low rated or not rated, etc.
The FTMF AMC was supposed to worry about these
things as a professional Fund Manager before they
illegally wound up the schemes as they were charging a
fee for this service. They can’t now scare unitholders to
get more leeway from unitholders when their conflict of
interest has been seen glaringly since the winding up
schemes.
6 There can be no guarantee that the
outcomes will be exactly as the Trustee
expects. We urge Unitholders to carefully
consider the following and seek
appropriate advice and guidance in
making this important decision.
• There is no guarantee from FTMF.
• There is no money assurance on amount to be
received by unitholders or no loss would occur.
• No time assurance for closing paying back all money.
• They are not sharing the Forensic Audit Report.
• With all these limitations, they are asking
Unitholders to seek advice and guidance in making
this important decision.
Thus, Unitholders have to seek this advice from the
Hon’ble Supreme Court only after preventing winding
up by their “No Vote”.
7 Voting “Yes” to the Resolution means
opting for an orderly Winding-up of the
Scheme with a potential to realize fair
value from the assets.
This is a strategy of confusion where unitholders are
being first told to decide on their own but now they are
being coerced to vote Yes under the lure of orderly
winding up. What is orderly winding up if FTMF has not
disclosed.
1. The amount of money unitholders will receive.
2. No loss would occur to unitholders.
3. How much time will it take for winding up and paying
back all money.
4. FTMF is not sharing the Forensic Audit report which
documents all their non-compliances.

4. CHENNAI FINANCIAL MARKETS AND ACCOUNTABILITY
(Registration No. 3482019 under Tamilnadu Societies Registration Act, 1975)
GA, Florentina 43, 1st
Main Road, Gandhinagar, Adyar, Chennai - 600020, Tamil Nadu, India.
Telephone: 044 79652180 | Email: contact@cfma.in | Website: www.cfma.in
8 Voting “No” to the Resolution means
opting for the Scheme to be reopened,
potentially leading to distress sale of
assets and loss of value 10,128 4,683
(46.24% of AUM).
The matter is before Hon’ble Supreme Court now and
therefor do not worry about post Supreme court
handling of redemption as the Hon’ble Supreme Court
will put suitable corrective system to ensure the conflict
of interest of FTMF is removed.
“Voting No” for winding up means cleaner system
under the Hon’ble Supreme Court and coming out of
the clutches of unreliable FTMF AMC, KMP’s and
Trustees.
9 • The securities in the Scheme can be
liquidated in an orderly manner
without the need to proceed with
distress sale (as redemptions are not
allowed) therefore enabling an
orderly liquidation of the portfolio
assets at fair value. The proceeds
realized by the Scheme will be
distributed to the Unitholders in
proportion to the units held by them,
at regular intervals.
• This option will enable recovery of
maximum value of securities held by
the Scheme.
• The Authorised Person would be in a
position to take the most appropriate
action with regard to liquidation of
each security as there will be no
undue haste or selling pressure.
• The NAV would not be negatively
impacted as liquidation would be
orderly and there would be no need
for distress sales
• Unitholders will not be required to
apply for redemptions. Unitholders
will receive regular pro-rata
distributions of investment proceeds
This is False hope.
FTMF has collected Rs 11,576 crore of outstanding Rs
28,000 crore without any effort or resolution as this
portfolio was clean. This has been received by way of
maturities, coupons and pre-payments which is 41% of
entire outstanding.
Therefore, it is wrong that entire holding has to be sold.
It is a lie.
Further, what has been reported by FTMF and others in
media is that more than 50% of their portfolio is
concentrated in illiquid securities, low rated unlisted
securities, etc. and it is exactly that money which
continued to be outstanding even after 8 months of
public debate and scrutiny.
FTMF is describing the procedure of managing sale but
the truth is that securities cannot be sold due to the
nature of choice in investment made by FTMF.

5. CHENNAI FINANCIAL MARKETS AND ACCOUNTABILITY
(Registration No. 3482019 under Tamilnadu Societies Registration Act, 1975)
GA, Florentina 43, 1st
Main Road, Gandhinagar, Adyar, Chennai - 600020, Tamil Nadu, India.
Telephone: 044 79652180 | Email: contact@cfma.in | Website: www.cfma.in
as assets are systematically
liquidated by the Scheme.
10 • The Scheme would be required to
reopen immediately and may need
an emergency liquidation of
securities, if a high volume of
redemption is received.
• This may entail distress sales of
securities in order to meet the
redemptions received. The market is
unlikely to have the liquidity to
absorb such large quantities of
securities over a short period of time
and it may not be possible to get bids
at reasonable prices for all securities
in such circumstances.
• A distress sale of securities held in the
portfolio could result in a rapid and
steep decline in the NAV leading to
substantial losses for Unitholders
(irrespective of market conditions).
While the endeavor would be to
minimize losses, however there is no
assurance that the Scheme will be
successful in doing so.
• Unitholders will need to apply for
redemptions if they wish to receive
monies. This may result in
disproportionate distribution of any
cash generated to Unitholders
depending on the time of
redemption.
• An adjustment in valuation and
consequential reduction in the NAV
may be required on account of the
above factors in accordance with
applicable regulations. *subject to
TER 13.
This is fear psychosis being created by FTMF to coerce
unitholders to give then a yes vote so that they are free
from all criminal and civil investigation on the grounds
that the unitholders have cleared this arrangement.
This is a trick of FTMF and Unitholders must not fall in
this trick, by “Voting No”.
The matter is before Hon’ble Supreme Court now and
therefor do not worry about post Supreme court
handling of redemption as the Hon’ble Supreme Court
will put suitable corrective system to ensure the conflict
of interest of FTMF is removed.
“Voting No” for winding up means cleaner system
under the Hon’ble Supreme Court and coming out of
the clutches of unreliable FTMF AMC, KMP’s and
Trustees.

6. CHENNAI FINANCIAL MARKETS AND ACCOUNTABILITY
(Registration No. 3482019 under Tamilnadu Societies Registration Act, 1975)
GA, Florentina 43, 1st
Main Road, Gandhinagar, Adyar, Chennai - 600020, Tamil Nadu, India.
Telephone: 044 79652180 | Email: contact@cfma.in | Website: www.cfma.in
11 • If the Trustee is authorized to
proceed with an orderly winding-up
of the Scheme as aforesaid, it will
proceed forthwith to seek further
approval from Unitholders for
appointment of a person under
Regulation 41(1) to carry out the
winding up. The Scheme currently
has approximately Rs 4,683 crores
(46.24% of AUM) of cash
accumulated from prepayments/part
payments, maturities, coupons etc.
• In the event of Unitholder approval
being received, the Trustee expects
that the Authorised Person would be
in a position to pay out this amount
to Unitholders soon after its
appointment.
• For all the reasons explained above,
the Trustee believes that it will be
beneficial for Unitholders to vote
‘YES’ to the proposed resolution.
No Trust in FTMF or their Trustees so “Vote No”.
There is inherent conflict of interest between
unitholders requirements and FTMF actions until now
and their future agenda.
No good can come out of FTMF or their KMP’s or Their
Trustees.
Note: In the interest of unitholders of other mutual funds, you are requested to circulate to
maximum number of people