THE HINDU BUSINESS LINE
Financial Daily
from THE HINDU group of publications

Monday, July 16, 2001

• AGRI-BUSINESS
• COMMODITIES
• CORPORATE
• FEATURES
• LETTERS
• LIFE
• MARKETS
• MENTOR
• NEWS
• OPINION
• INFO-TECH
• CATALYST
• INVESTMENT WORLD
• MONEY & BANKING
• LOGISTICS

• PAGE ONE
• INDEX
• HOME

News | Next | Prev


US-64 exit level set at 3,000 units -- Repurchase facility from Aug; to be NAV-based from Jan, 2002

Our Bureau

MUMBAI, July 15

THE Unit Trust of India today decided to give an exit route to small investors holding up to 3,000 units of the Unit Scheme-64 (US-64). It has also decided to make the scheme NAV-based from January 1, 2002.

As per the relief scheme announced today, all investors holding up to 3,000 units of US-64 scheme as on June 30, 2001 can avail themselves of repurchase facility from August 1, 2001 to May 31, 2003.

Repurchase price in August will be at the face value of Rs 10 per unit. Thereafter, the repurchase price will be increased by 10 paise every month.

Partially lifting the ban on sale and repurchase of US-64 scheme imposed from July 2, UTI said the scheme will be NAV-based from January 1, 2002.

The much-awaited relief package for small investors was announced after a meeting of the board of trustees chaired by Mr M. Damodaran, who took over as Chairman of UTI today.

Fresh sales of US-64 units will begin only from January 1, 2002 at NAV-linked price. Investors in the 3,000-bracket thereafter can have the option of availing themselves of the repurchase facility at the then prevailing NAV-based price or the administere d price announced now. They will be eligible for dividend as may be declared.

Addressing newspersons after the board meeting, Mr Brij Gopal Daga, Executive Director, UTI, said, ``Adequate liquidity arrangements have been made to ensure that any funds needed for redemption will be available without UTI having to resort to large-sca le sale of its investments in the market.'' He said the gap, if any, between the NAV and the applicable repurchase price will be met in such a way that this will prevent any NAV dilution on account of the relief package.

He said UTI is talking to banks and financial institutions for funds.

From January 1, 2002, investors are free to buy and sell any number of units at NAV-based price.

The sale and repurchase will be suspended in July 2002 for book closure, Mr Daga said.

Mr daga said investors holding up to 3,000 units account for 47 per cent of the unit capital of US-64.

Intercepted by the newspersons on his way out after the board meeting, Mr Damodaran, the new Chairman, said, ``We have put together a package in the best interest of the small investor. We expect that after seeing the graded system, the investors will st ay committed to the scheme.''

Mr K.G. Vassal, Executive Director, has been in charge as Chairman from July 3 following the resignation of Mr P.S. Subramanyam as Chairman.

Comment on this article to BLFeedback@thehindu.co.in

Send this article to Friends by E-Mail


Next: Damodaran new UTI chief
Prev: Insurance meet to focus on competitiveness
News

Agri-Business | Commodities | Corporate | Features | Letters | Life | Markets | Mentor | News | Opinion | Info-Tech | Catalyst | Investment World | Money & Banking | Logistics |

Page One | Index | Home


Copyrights © 2001 The Hindu Business Line.

Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line.