UTI to meet US-64 conversion deadline: Damodaran

Our Economic Bureau

New Delhi, Dec 6: Unit Trust of India chairman M Damodaran has said the trust will adhere to the deadline of converting its flagship scheme US-64 into net asset value- based scheme by January 1, and asserted that the mutual fund major is not facing any redemption pressure.

UTI, based on the suggestions of the Deepak Parekh committee report, has earlier resolved to convert US-64 into a NAV-based scheme. However, with only few weeks left for the January 1 deadline, questions are being raised whether the trust will be able to implement this crucial recommendation.

Mr Damodaran, who was in the Capital and met senior officials in the finance ministry, told newsmen on Thursday, “we will stick to the target and there is no rethinking.”

He also said there is no redemption pressure as far as the US-64 is concerned, adding as against redemptions of Rs 88 crore each in September and October, redemptions totalled only Rs 48 crore in November. “I see no redemption pressure in January or anytime in future”, he said.

The UTI chief also refrained from making any comments on the recommendations of the Malegam report. He, however, added the UTI board is still considering the report.

The Malegam committee had recommended far-reaching changes in the structure of UTI, including induction of a strategic partner to revitalise the mutual fund major.

The UTI chief, however, made it clear that the trust is not looking at any bailout package, adding however, that the government backing is “certainly an assurance to us.”

On the reported move to convert its holding in Infosys into the ADRs, Mr Damodaran said there is no such proposal under the consideration of the management.