All investors can use US-64 window
Mumbai: The repurchase window of the Unit Scheme 1964 (US-64) of the Unit Trust of India will be open to all investors from August 1, 2001. The repurchase, however, has been restricted to a limit of 3000 per unit holder as on June 30, 2001, and is subject to a repurchase price schedule from August 1, 2001.

At a meeting held on Sunday, chaired by the new chairman, M Damodaran, it was decided that UTI will continue to repurchase units from unit-holders till May 2003 based on the net asset value (NAV). The schedule adds an incremental 10 paise every month from the benchmark of Rs 10 in August 2001 to Rs 12 in May 2003.

US-64 will fully reopen for fresh sales and repurchases at NAV-based prices with effect from January 1, 2002. Thereafter, for 3000 units per unit-holder the repurchase price would be the either the administered repurchase price or the then prevailing NAV based repurchase price, whichever is higher.
The bail-out plan for small investors was finalised by the government, in consultation with the four member consultative group set up to advise on exit options for small investors in US-64 and top UTI officials, over the weekend.

UTI has already finalised a Rs 3000 crore bail out package from a consortium of banks and financial institutions.
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Controlling stake for foreign investors in telecom companies
New Delhi: Foreign investors are likely to be allowed controlling stake in basic and cellular companies, with the holding limit likely to be raised to 74 per cent by the Telecom Commission . At the moment, this limit is at 49 per cent.

The rationale for raising the limit is that foreign institutional investment in basic and cellular would be made for investment equity gains, and not to run the companies. Hence allowing them to have a higher stake would bring in the much needed capital for expansion, but would not become security threats.
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