Mumbai, May 20 -- Market regulator Securities and Exchange Board of India (Sebi) has tweaked its rules and allowed Franklin Templeton India to list its six shut schemes on the stock exchanges to provide an alternative exit option to 300,000 investors of these schemes.

It is to be seen whether the stock exchange listing can create some liquidity for investors holding illiquid units of the shut schemes. Prospective buyers will have to take a judgement call on the assets underlying these units, their intrinsic value and their liquidity in the secondary market.

The units of the schemes that are in the process of being wound up 'shall' be listed on stock exchanges and investors can exit through this mechanism, said Sebi. This process will be...