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UTI suspends sale and repurchase in US-64

Unit Trust of India has suspended sale and resale under the scheme its flagship balanced scheme, Unit Scheme '64 for a period of six months starting July 2001. Further, the Trust has slashed the annual dividend payout under the scheme to 10% for the year ended June 2001. All unit holders under the scheme would be entitled to a payout of Re 1 for every unit held, a fall from Rs 1.375 paid by the Trust last year.

Suspension of sale and repurchase under Unit Scheme '64 means that while no fresh investments can be made, the existing unitholders will have to wait till January 2001 to exit the fund through the repurchase route. Till then, the only exit option available will be through the secondary market. The scheme is listed in the Wholesale Debt Segment of the NSE, OTCEI and Ahmedabad, Bangalore and Delhi Stock Exchange.

US-64 has reported a Net Income of Rs 1524 crores for the year ending June 2001, against Rs 2597 crore reported last year. While sales in the scheme during the year accounted for Rs 2261 crore, it came under severe redemption pressure to the tune of Rs 5962 crore. Of this, the redemption in April and May 2001 alone accounted for Rs 4141 crore, taking the Unit Capital sharply down to Rs 12,778 crores against Rs 15,146 crores in June 2000.