Us-64 Bond Swap - Just What The Doctor Ordered

A few weeks ago, we had expressed our doubts about the advisability of staying in the US-64 scheme when the exit option became available on May 31.

We are glad to report that the swap scheme - for exchanging units for tax-free bonds - has proved us wrong. It is not only attractive for existing unitholders, but makes enough sense for outsiders to buy into the scheme while there is still time.

The scheme, as announced some time ago, entitles unitholders with holdings up to 5,000 units to exit at Rs 12, and those with more than 5,000 at Rs 10. These holdings can be converted - at the unitholders