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How to Redeem your US-64 Units

With US-64's repurchase package in the limelight with a flurry of reports, this has understandably created confusion among investors on the nature of proposed transactions. We present a complete FAQ on how you can deal in your US-64 units.........

Q. When Can I offer for repurchase my holdings up to 3000 units at predetermined price?
A. Anytime after from August 1, 2001 to May 31, 2003 except during the book closure period in June 2002.

Q. How many units can I offer for repurchase?
A. Up to 3,000 units per investor, provided thse units were held in one's name as on June 30, 2001.

Q. What happens to my holding above 3,000 units?
A. The Trust will repurchase this holding at NAV- based prices from January 1, 2002. However, those of the unitholders who do not offer for repurchase their unitholding up to December 31, 2001, will get the repurchase price which would be the higher of the applicable repurchase price offered or the then prevailing NAV-based repurchase price.

Q. What price will I get for repurchase units?
A. From August 1 to December 31, 2001 at the repurchase price fixed already. Thereafter, at the repurchase price given or the NAV-based price to be declared from time to time, whichever is higher.

Period
2001-2002
Aug-01 10
September ‘01 10.1
October ‘01 10.2
November’01 10.3
December ‘01 10.4
January-02 10.5
February ‘02 10.6
March ‘02 10.7
April ‘02 10.8
May ‘02 10.9
Jun-02 Book Closure



Period
2002-2003
Jul-02 11
August ‘02 11.1
September ‘02 11.2
October ‘02 11.3
November ‘02 11.4
December ‘02 11.5
January-03 11.6
February ‘03 11.7
March ‘03 11.8
April ‘03 11.9
May ‘03 12
Jun-03 Book Closure

Q. Can you give some illustration to show how much I can offer repurchase?
A. If you have 3010 units.

You can offer for repurchase up to 3,000 units and for the balance 10 units a fresh membership advice (M/A) will be issued to you if you tender your holding up to December 31, 2001. You can offer for repurchase the balance 10 units at the NAV-based price on or after January 1, 2002.

Alternatively, if you tender all your 3010 units on or after January 1, 2002, your first 3,000 units will be repurchased at the price offered in the month of submission or NAV-based price, whichever is higher.The balance 10 units will be repurchased at the NAV-based repurchase price prevailing in that month.

B. If you have 10 certificates of 1050 units each You can offer for repurchase 3 certificates totaling 3,000 units and can get a fresh M/A for the balance 150 units.

C. If you have 3 certificates of 500 units and 3 certificates of 700 each.You can offer for repurchase 3 certificates totaling 2,100 units. Against 2 certificates of 500 units each you can offer for repurchase 900 units and you will get a M/A for balance 100 units.

D. If you have an ADU of 3300.452 units You can offer for repurchase up to 3,000 units and for balance 300.452 ADUs you will be issued a new M/A which can also be repurchased any time from January 1, 2002.

E. If you had acquired up to 3,000 units as a transferee in or before May '01 You can offer for repurchase up to 3,000 units under the package.

F. If you had given for split or subdivision of a certificates or had consolidated in or before May '01 You can offer for repurchase up to 3000 units as described above.

G. If you have applied for transfer of certificate for 3,000 units in July 2001.If you have tendered for transfer in your name (i.e. as transferee) in July 2001 you will not be eligible for repurchase under the package. You can, however, purchase these units at the NAV-based price from January 2002.

Q. Can holding up to 3,000 units be repurchased in tranches?
A. Yes, within the overall limit, one can repurchase up to 3000 unit in one or more tranches.

Q.What happens to change in name, status and address done after June 30, 2001?
A. Such changes do not take away unitholder's entitlement under the package.

Q.Is this package available to any particular type of investor category?
A.No, This package, up to 3000 units only, is available to all types of investors holding units as on June 30,2001.

Q. If Iam a non-individual unit holder with cases similar to the above?
A.You can repurchase up to 3000 units as detailed above, as the package is available to both individual and non-individual unitholders within the overall limit.

Q.Give illustrations about the circumstances under which I cannot make use of the liquidity options created of small investors?
A. If you have given your transfer case for acquiring units in the month of July 2001 or thereafter.
B.If you buy units in the secondary market anytime from July 2001.
C.If you have from a friend and send your case for transfer in July 1 and thereafter.
D.If any of your request was sent back to you under objection for any reason and is resolved by you at a date later than May 31, 2001.


Q.
What happens if I buy units from the secondary market today?
A. If you buy units from the secondary market, you cannot use this package of repurchase, as it is only for
those unitholders who were on US-64's books as on June 30, 2001. You can repurchase the holding acquired through market operations after January 1, 2002 at the NAV- based price.

Q. Will I get any dividend for 2001-02 and 2002-03?
A. The dividend, if any, for 2001-02 will be paid to only those unitholders whose name is registered in US-64's books as on June 30, 2002 or any other record date for the year 2001-02 and June 30, 2003 or any other record date for 2002-03. In other words, if you do not offer for urchase you holding under the package or otherwise, earlier than the record date for dividend, you will be entitled to dividend for that year.

Q.IF I offer for repurchase 300 units in July 2002, do I get the dividend, if any, for 2001-02, over and above the July 2002 price of Rs 11 per unit.?
A.Yes.

Q. Does UTI have sufficient quidity to meet redemptions?
A. Yes, adequate liquidity arrangements have been made to ensure that any funds needed for redemption will be available to UTI without it having to resort to large-scale sale of its investments in the markets.

Q. Who will fund the deficit, if any, between NAV and the offered purchase price?
A. The deficit if any, between the offered purchase price and the NAV will be met and funded from sources external to the scheme.

Q. Whether the difference, if any, between NAV and offered repurchase price would cause an erosion in the NAV for the remaining unitholders?
A. No, because of the external funding of the defict, if any.

Q. The repurchase price results in a capital loss for those who had purchased units during the last few years?
A. The liquidity option has been created basically for small investors of US-64, who may be in urgent need of funds.

Q.I have units in dematerialised (demat) form and want to offer them for repurchase.
A. For repurchasing demat units you may contact your DP with the repurchase form. Your DP will verify your holdings and signature and certify the same on the purchase request form. This request from could be sent either directly to our Mumbai Main Branch (MMBO) or to the nearest branch office of the Trust(which in turn will forward the same to MMBO). The MMBO will process the request within the framework of the package and will pay the proceeds to you. Please note that the overall ceiling of 3,000 units will be in force in such case also.

Q.When is the first NAV likely to be declared?
A.On or before January 1, 2002.

Q.Whether the NAV will be declared on daily, weekly or monthly basis?
A.The periodicity or frequency of the NAV will be announced before January 2002.

The liquidity option has been created basically for the small investors of US-64, who may be in urgent need of funds. Unitholders will note that while they get an opportunity to create liquidity by repurchasing their holding up to 3000 units, it would be worth while to recognise the benefit of the assured repurchase price offered under the package, which will increase from month of month.

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