UTI cuts US-64 dividend
Mumbai: The much-awaited announcement of dividend for the US-64 scheme of the Unit Trust of India has come. The mutual fund giant has declared a 13.50 per cent dividend for the year ending 30 June 1999, making it the lowest ever paid in the last 16 years. UTI has been maintaining the dividend at 20 per cent in the last three years.

The current year's dividend is tax-free and the effective yield, based on a sale price of Rs 14 last year, works out to 9.64 per cent.

UTI has met the entire dividend outgo of Rs 1,800 from income earned during the year.

UTI chairman P.S. Subramanyam said the reserves have changed from a negative Rs 1,098 crore last year to a  positive position. He said from an earning of Rs 2,200 crore, UTI could have paid a dividend of 16.2 per cent, but the board of trustees wanted their decision to be in line with the Deepak Parekh Committee recommendations. They also took into consideration the yield of other instruments like fixed deposits.

UTI has also announced new sale and repurchase prices for the US-64 units, which are at a reduced Rs 13.50 and Rs 13.20 respectively.
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No more MIPs
Mumbai: The board of trustees of the Unit Trust of India has decided in principle not to launch any more monthly income plans with assured or fixed returns.

The Deepak Parekh Committee, in its recommendations, has advised against schemes offering assured returns to investors.

A final decision will, however, be taken in accordance with the demand for such products, UTI officials said.
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ISE wants to be an infotech exchange
Mumbai: The Inter-connected Stock Exchange of India is planning to be an infotech exchange. It has a proposal to list all information technology and software integrated companies. The ISE board is to discuss the proposal at a meeting on 10 July.

Infosys Technologies and BSES are two scrips listed at the exchange in the recent weeks. The bourse has 4,613 trading members and 15 participating exchanges. The total number of listed companies is 3,467 and its asset base is Rs 132.98 crore.
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J.P. Morgan faces hurdles in Japanese bank deal
Tokyo: Disagreement with the Japanese government is making J.P. Morgan's plan to take control of the Long-Term Credit Bank with a Japanese partner a non-starter.

The US-based investment bank had been considered a strong contender for LTCB, because it was acting in cooperation with Orix, the Japanese leasing company. The Japanese government recently nationalised LTCB, but is now keen to sell it.
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