Software To Track Uti Repurchases By Weekend

UTI is putting in place the software to cap the repurchase of US-64 units by individuals at 3,000 by this weekend.

The software will connect UTI branches across the country well before the repurchase windown opens in August.

Capping the sale of units at 3,000 per investor is not an easy task since the mumber of investors do not tally with the number of unit certificates.

In other words, since one individual can theoretically hold more than one certificates, capping an individual investor's sale of units at 3,000 needs tracking all certificates minutely.

Although the US-64 has about two billion unit holders, the actual number of investors are around 45-50 lakh.

"We will ask all investors to declare their unit certificates. By following the folio number of units, we will be able to cap the repurchase at 3,000 even though one individual may be holding three to four certificates. One can split the repurchase at few tranches till it reaches the 3,000 mark. But once the cut-off point is reached, the window will be closed for the individual," said a UTI executive.

By fixing the cut-off point at 3,000, the trust will cover over 90 per cent of the US-64 investors.