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.
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.
Sinha says any proceeds coming from block deals at a better
price should be ploughed back into the institution. "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."