Us-64 Unlikely To Be Nav-Linked By Feb & #8217;02

Unit Trust of India is unlikely to link flagship US-64 to its net asset value (NAV) by February 2002. This is being done to ward off the panic that has gripped the market and led corporates to make a beeline for redeeming their US-64 holdings.

UTI is also expected to announce a dividend payout of around 9 per cent for US-64, down from 13.75 per cent last year. This is in line with the rate of return offered by the public provident fund (9.5 per cent) and the RBI relief bond (8.5 per cent). The curtailment in dividend is likely to reflect its eroding net asset value.

Although UTI brass refused to comment on the NAV issue, market sources said there have been informal discussions with the finance ministry on this issue. A formal decision will be taken at the trust board meeting on July 2.