Uti Commits To Repurchase Price Schedule Till May, 2003

Unit Trust of India (UTI) has indicated that it will repurchase units under its flagship US-64 scheme with a ceiling of 3,000 units per unit holder till May 2003. But more importantly, UTI has committed itself to a repurchase price schedule from August 2001 to May 2003. The schedule adds an incremental 10 paise every month from the benchmark of Rs 10 in August 2001 to Rs 12 in May 2003. The scheme is to be linked to its net asset value (NAV) as early as in January 2002, UTI said in a press release today.

The cap of 3,000 units is applicable only to its existing unit holders.

The ban of sales and repurchases of US-64 units will continue for other investors till December 2001 but the scheme will reopen for fresh sales and repurchases from January 2002 on NAV-based pricing, a UTI release stated.

Since the Trust says investors will be given the higher of the two prices