Uti Likely To Invest Bailout Funds In Gilts

The bond route being considered by the finance ministry to bail out the flagship US-64 scheme of the Unit Trust of India (UTI) would involve issue of securities by the government to the mutual fund.

This would enable the trust to sell the securities in the secondary market when it needs to raise funds for meeting the gap between the administered repurchase price of US-64 and its net asset value.

According to government officials, the route would involve a cash support to UTI to be immediately reinvested by the trust in government securities.