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No fresh sale of units: Damodaran

Our Bureau

MUMBAI, July 17

UNIT Trust of India (UTI) is not in favour of swelling the corpus in its troubled scheme, Unit Scheme-1964 (US-64), and instead will focus on improved management of what (funds) is with the scheme. ``There will be no fresh sale of units while consolidati on process is on,'' UTI Chairman, Mr M. Damodaran, said.

A confident Mr Damodaran said that tough times never last, but the tough institutions do, implying that UTI will be able to overcome the difficulties it has been facing over the last few months. He was speaking at a function organised by UTI Institute of Capital Markets and the Association of Mutual Funds in India (AMFI) to release the Mutual Funds Year Book-2000.

``The decision to offer repurchase facility up to 3,000 units is a first step in a series of measures in protecting the interests of investors who have been with the scheme for number of years,'' Mr Damodaran said.

UTI will also consider providing liquidity to large investors holding more than 3,000 units. UTI's endeavour is not to forget the large investors, who have helped the scheme over the years. ``In any difficult situation, we tend to matter more about small investors which is normally accepted and is also recognised internationally,'' he said.

Commenting about the sale of strategic holding (bloc deals) to restructure US-64, Mr Damodaran said it was UTI's least priority.