Rediff Logo
Money
Line
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Women
Partner Channels: Auctions | Health | Home & Decor | IT Education | Jobs | Matrimonial | Travel
Line
Home > Money > PTI > Report
December 8, 2001
Feedback  
  Money Matters

 -  'Investment
 -  Business Headlines
 -  Corporate Headlines
 -  Business Special
 -  Columns
 -  IPO Center
 -  Message Boards
 -  Mutual Funds
 -  Personal Finance
 -  Stocks
 -  Tutorials
 -  Search rediff

    
      


  Call India
   Direct Service

 • Save upto 60% over
    AT&T, MCI
 • Rates 29.9¢/min
   Select Cities



   Prepaid Cards

 • Mumbai 24¢/min
 • Chennai 33¢/min
 • Other Cities




 India Abroad
Weekly Newspaper

  In-depth news

  Community Focus

  16 Page Magazine
For 4 free issues
Click here!

 
 Search the Internet
         Tips
 Sites: Finance, Investment
E-Mail this report to a friend
Print this page Best Printed on  HP Laserjets

UTI not to dump equities; may sell NPA shares to competitors

Unit Trust of India chairman M Damodaran on Saturday ruled out the possibility of dumping equities in its flagship scheme US-64 as it might have an adverse effect on the market, but threatened to sell non-performing shares to competitor companies at a higher price.

"UTI will not dump the shares it is holding just to achieve that objective (increasing the debt exposure in US-64), but was working out schemes to get maximum returns from both non-performing and performing assets," Damodaran told NRI investors in Dubai.

"One of the factors holding the market down now may be the feeling that UTI may download shares to meet redemptions once it accepts NAV-based listing next month. But we are not going to sell to meet fund demands," he said.

The UTI chief, however, threatened to sell unattractive shares to their competitors at attractive prices.

UTI will offer its stake in companies yielding nothing, to their rivals if these companies themselves did not buy back the shares, he said, adding, "we are concerned only with investors' interests."

Damodaran assured NRI investors in the Gulf that US-64 was firmly on the road to recovery and suggested that investors stay with the fund for better returns.

He told reporters that the US-64, which will be traded on the basis of its net asset value from January 1 2002, was being restructured along with other schemes to reduce the equity exposure and increase debt exposure.

Damodaran also said that UTI will not launch assured-return close-ended schemes though it may have monthly income schemes with variable returns.

He said the UTI board will consider the recommendations of Malegam Committee on restructuring India's largest mutual fund at the end of this month or early next month.

He also clarified that UTI has not yet approached Infosys Technologies with any proposal to convert its entire equity holding in the IT company into American depository receipts for offloading them in the international markets.

Damodaran said there is no proposal to convert its 5.6 per cent holding in the IT major to ADRs and market abroad to realise a higher value.

ALSO READ:
The UTI Crisis

Back to top
(c) Copyright 2000 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Tell us what you think of this report

ADVERTISEMENT