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UTI working in for review

Our Bureau

NEW DELHI, July 3

THE Government would review the entire functioning of the Unit Trust of India in the wake of the decision by the trust to suspend sale and repurchase operations in the US-64 scheme for the next six months, the Finance Minister, Mr Yashwant Sinha, said.

``When we look at the US-64 scheme, we would also look at other aspects of the functioning of UTI,'' Mr Sinha told newspersons after a meeting with the RBI Governor, Dr Bimal Jalan, which was held to discuss the current slowdown in economy.

Late on Monday night, the Finance Ministry issued a statement saying that the Ministry would look into all aspects of UTI's announcements and take appropriate measures, if necessary.

On the impact on the small investors of UTI's decision on US-64 announced yesterday, Mr Sinha said that it was `significant' that out of the redemptions in April and May this year, 90 per cent have been by large institutional investors and not by small i nvestors.

Commenting on the rupee situation, Mr Sinha said that there was no cause for concern. ``The forex situation is absolutely under control. Let us not create it as a crisis,'' he said.

He pointed out that the country's forex reserves have crossed the $43-billion mark. ``We are sitting on $34-billion reserves. Anyone who thinks that there is a problem in the forex situation is mistaken,'' Mr Sinha said.

Pic.: Finance Minister, Mr Yashwant Sinha, giving statement on UTI issue to media persons in the capital on Tuesday.

Picture by Kamal Narang