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UTI to be SEBI compliant by 2002: Damodaran

Unit Trust of India chairman M Damodaran on Saturday asserted that all its schemes would comply with SEBI norms by 2002.

"UTI will be completely SEBI compliant by year 2002. All the schemes of UTI will become NAV-based by January 2002," Damodaran told reporters in Chandigarh on Saturday.

The UTI chief, who was in Chandigarh to interact with investors, admitted that there were problems with US-64 but said long term investors had received attractive returns from the scheme.

UTI has 82 schemes out of which US-64 accounted for 15 per cent of investible funds.

Damodaran said UTI was in talks with some companies to reduce its equity exposure.

"The talks are in progress with promoters and companies for reducing our holdings so as to ensure good value for the investors," Damodaran said.

On a possible distress sale of equity, Damadoran said, "this is the last thing that UTI will do and we have made other arrangements to meet our requirements."

About 71 per cent of US-64 portfolio comprised equity a few months ago, he said, adding the equity exposure had now come down to 61.3 per cent.

Damodaran said that the inherent value of US-64 went down immediately after India's nuclear tests in May 1998 and subsequent imposition of sanctions from certain countries, which impacted the market.

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