Mumbai, April 12: The Board of Trustees of Canbank AMC have approved conversion of Canbonus scheme into an open-ended fund with effect from May 3, 1999. Launched in May, 1991 as a closed-ended scheme, Canbonus is an aggressive, growth oriented scheme with investments in equity forming almost 90 per cent of the portfolio. The scheme offered limited repurchase facility from August 3, 1998 onwards and is slated to go open-ended from May 3. Subsequent to this, the scheme will be delisted from all stock exchanges as after going open-ended, instant liquidity will be provided by the fund. Canbonus was due for redemption anywhere between seven to 10 years, i.e. between July 1998 and July 2001.
According to a press release, Canbonus scheme has offered two bonus issues. The first bonus was in a ratio of 1:5 in 1994 and the second bonus was 1:4 in 1996. With roll over into an open-end scheme, exit will be provided at the NAV. The mutual fund plans to distribute any surplus by way of fully paid bonus units or by wayof income distribution. Subsequent to the roll over, the scheme will announce daily NAV, repurchase price and sale price.
Also, the scheme will give tax benefits under section 80L & Sec 48, Sec 112, Sec 54EA and EB of the Income Tax Act 1961.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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