Canstar (Capital Gain)

The Canstar Capital Gains mutual fund scrip fell by 13 per cent over the previous week. Market sources attribute this to the uncertainty following the announcement of a postal ballot for the investors to obtain a vote on the resolution to alter the terms of the Canstar scheme though the idea was rejected by the unitholders at a recently held investors meet.

The resolutions pertain to reduce the repurchase price in accordance with the NAV and wind up the scheme prematurely. While the current NAV is around Rs 13 the repurchase price promised is Rs 23. The scheme had borne the brunt of the securities scam. Also, the performance of the scheme has been quite average and Canstar ended 1995-96 with a deficit of Rs 79 crore.