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July 10, 2001
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Money > Business Headlines > Report July 10, 2001 |
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UTI board constitutes consultative group to revamp US-64The Board of Trustees of Unit Trust of India, at its meeting held on Monday decided to constitute a consultative group comprising eminent experts like Y H Malegam, R H Patil and N A Soonawala to advice the Board on how best to revamp US-64. The Board also requested one of the trustees, R P Chitale to join the Group as a special invitee. The Group has already commenced its deliberations and is expected to submit its recommendations to UTI Board in a couple of days. The Board had earlier met on July 6, to review the developments after the announcement of suspension US-64. The Board advised the management to work out alternative proposals taking into account the government's concern to satisfy the liquidity needs of US-64 investors, (especially small investors), who have been long term investors in the scheme. Small investors have been hit by UTI's controversial decision, taken on July 2, to freeze the sale and repurchase of US-64 units for up to six months. US-64 is one of UTI's most popular mutual fund schemes and has 20 million investors. However, in Monday's (July 9) meeting the board did not zero in on any recommendation. Instead it has asked for more information before it could choose any of the alternatives placed before it. The board is set to meet again in a couple of days to continue the discussions. Meanwhile, UTI is processing the dividend of 10 per cent as has already been approved by the Board at its July 2 meeting, and the despatch of dividend warrants as well as ECS (electronic clearing service) credits, which will be completed by July 31. The persons who have given mandate for reinvestment of their dividend income will be separately advised about the mode of distribution of dividend to them. In an emergency meeting on Friday, the UTI board decided to work on alternative exit options for the small investors. UTI brass has been working over the weekend to trump up various options that can be offered at this stage. Once, the board of trustees ratifies a package, it will be informally submitted to the finance ministry for approval and only then offered to the unit holders. "The government has expressed a desire to approve of the package that we decide upon. Hence, we will refer the decision we have made to them," B G Daga, executive director of UTI said. ALSO READ:
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