Redemptions for US-64 rise on third day

Our Markets Bureau

Mumbai, Aug 3: A steady rise in the redemptions of US-64 units of the Unit Trust of India (UTI) was witnessed on Friday after the Trust offered a new plan for redemption on Wednesday.

During the first three days, the UTI received repurchase requests from holders of 2.2 crore units, the consideration for which amounted to Rs 22.2 crore. The average request works out to around 1,405 units per investor.

The repurchase window for small investors was opened on Wednesday after the scheme was frozen on July 2 by former UTI chief PS Subramanyam. Under the new special package, the Trust received requests from a total of 15,824 unitholders covering 2.2 crore units at all branches of the UTI.

The repurchase outgo on Friday works out to around Rs 9.1 crore, up from the repurchase outgo of Rs 7.5 crore on the second day. The preliminary data from the UTI branch network showed that the Trust had received about 1,000 more applications over the first day. On the first day of redemption, UTI had received requests for only Rs 5.639 crore. In anticipation of a rush of investors, UTI had opened six counters each at Mumbai and Kolkata, which were said to have been closed.

Meanwhile UGS10000, the only interval fund of UTI, would open for sale and repurchase during August 6, 2001 to August 13, 2001. The sale and repurchase price of the units is based on the NAV of the day on which the application is accepted (up to 2 pm on that day).