UTI decides to split US-64 into two schemes

Mumbai: Unit Trust of India (UTI) has decided to split its Unit Scheme-64 (US-64) into two schemes. This split into an administered price scheme would become a part of UTI-1 and US-2002, a net asset value-based scheme.

UTI chairman M Damodaran says the administered scheme will comprise assets before 30 June 2001, while US-2002 will have assets from the unit capital sold on and after 1 January 2002.

He says the basis for dividing the assets of the scheme was calculation of the net asset value (NAV) as the schemes NAV-based sale and repurchase commenced from January 2002. "By current estimates, US-2002 will have a capital base of Rs 181 crore and it will be Securities and Exchange Board of India-compliant from day one."

Finance joint secretary U R Sinha says the government has asked UTI not to go for any distress sale of securities, including equity, and the centre will provide assistance for any shortfall as well as for the amount, which cannot be realised through the sale of some securities.

But Sinha says any proceeds coming from block deals at a better price should be ploughed back into the instit/investments/funds/imageson. "UTI has also evolved a separate arrangement for NPA recovery that will be transferred to a different fund and the proceeds will be used to repay investors of specific schemes."