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Government Sops to Retain US 64 Investors

After redefining Unit Scheme '64's asset allocation and pricing method, today the government announced additional incentives to investors to stay put in the fund. Besides increasing the number of holdings eligible for repurchase and offering the a guaranteed price to those who stay till end, the UTI board will gradually come under SEBI lens. Read ahead for the new dole out package…

After redefining Unit Scheme '64's asset allocation and pricing method, today the government announced additional incentives to investors to stay put in the fund. The limited guaranteed repurchase price facility announced on July 15,2001 for limited holdings of 3000 units has now been extended up to a limit of 5000 units.

And for the remaining units investors have been offered higher of the minimum repurchase price of Rs 10 or NAV on May 31, 2003. However, for redemption of these units between January 1, 2001 and May 31, 2003 investor will realise the NAV based repurchase price, which is likely to be less than Rs. 10.

Like the previous limited purchase facility the assured repurchase price has been offered only to old investor's i.e. unit holders on the books of UTI as of 30 June 2001. UTI will disclose the first NAV of US 64 on December 31, 2001.

The government also announced reconstitution of UTI board, with separate trustee and asset management functions by December 31, 2002.