BSE cracks down on brokers
Mumbai--The BSE has suspended four stockbrokers for an indefinite period. Two others have been suspended for three months.
The errant brokers whose operations have been suspended indefinitely Nikko Stock Brokers Pvt Ltd, CB Muchhala, E’L Dorado Guarantee Ltd and HRS Insight Financial.
Operations of Angel Securities Ltd and Mahesh Kothari Share & Stock have been suspended for three months, pending investigation into their ACC shares deal.
Back to News Review index page  

US-64 repurchase price could be fixed at unit face value
Mumbai--The Unit Trust of India may peg the repurchase price of the units of its US-64 scheme at its face value (Rs 10 per unit) for small investors wanting to exit the scheme. Sources said one of the views that found favour was that the repurchase price could be fixed at the face value for a limited period of time.
The board will also deliberate on the definition of the "small investor " who will be eligible for the relief package.
However, UTI executive director BG Daga said at a press conference in Mumbai on Friday that investors holding upto 1,000 units of US-64 form almost 55 per cent of the total investor base.
Daga also said that the board will consider "all options, within the ambit of the ban or outside it," meaning that the board will have to review its earlier decision on whether to continue with the ban.
With the reserves of US-64 turning negative, the Trust is looking at ways to overcome the liquidity crunch to pay-off the small investors. The options include the Reserve Bank of India extending a special repo line to UTI in lieu of its portfolio of government securities; banks buying out the Trust’s portfolio of triple A and double A rated bonds and UTI selling its real estate assets.
Back to News Review index page  

US-64 may be split into equity, debt schemes
Mumbai—UTI officials say the US-64 scheme may be split into two separate--equity and debt schemes.
The one containing equity shares will be called US-64 Equity Fund and other largely comprising debt assets will be known as US-64 Income Fund.
The scheme may be split in the 70:30 equity-debt proportion, or other ratio depending upon its present net asset value and the asset mix.
The debt and equity investments would be transferred to the respective new funds at the book value, which will ensure appreciation in the NAV of the Income Fund and show depreciation in the NAV of the Equity Fund.
The option also gives the trust some breathing time to restructure the fund’s equity portfolio.
Back to News Review index page