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UTI creates liquidity option for
US-64 small investors

The repurchase price of Rs 10 (face value) will be for the month of August and for the subsequent months it will increase by 10 paise till May 2003, Unit Trust of India (UTI) officials said.

But if the NAV is higher, the US-64 units will be repurchased at that price, they added.

The board of trustees of UTI approved this measure at a meeting in Bombay on Sunday after M Damodaran was appointed as its new chairman, UTI officials said.

On July 2, the UTI on Monday suspended sales and repurchase of its popular US-64 scheme for six months from Tuesday to restructure it in the face of volatile stock market.

US-64 scheme will fully reopen for sale and repurchases at NAV-based prices with effect from January one, 2002, they said.

Adequate liquidity arrangements have been made to ensure that any funds needed for redemption will be made available to UTI without it having to resort to large-scale sale of its investments in the market, the officials added.

The UTI Crisis: Complete Coverage

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