13 schemes already delisted; US-64, Mastershare to go soon

UTI to delist all schemes from SEs by month-end

Sudhir Shetty

Mumbai, Jan 2: The Unit Trust of India (UTI) would finally delist all its listed schemes from the bourses by end January, a move that will help the fund major cut costs. The sale and repurchase facility for these schemes would thereafter be available only through the repurchase window of the fund major.

Of the various schemes that were listed on the bourses, only two UTI schemes are now left listed: US-64 and the popular Mastershare. Since April 2000, UTI has delisted around 13 schemes and providing the sale and repurchase options through its own window.

The schemes delisted include UTI Masterplus 91, Mastergain 92, UGS 2000, UGS 5000, Mastergain 92 and Grandmaster, Mastergrowth (May 2000). Monthly Equity Plan (MEP) 1993, MEP 1995, MEP 1996, US 92, EOF were delisted from June 26, 2000. On listing expiration of ISEF on November 20, 2000, the listing was not renewed while the US-95 was delisted from August 1, 2000.

According to UTI chairman M Damodaran: “The rationale behind delisting spree is, to do everything to save investors cost and give them the maximum facility and better returns and through this repurchase/sale window investors are likely to get real value for their investments.”

The UTI has good distribution network with large number of branches in which investor can exit or enter. Delisting of schemes thus saves money for investors as the schemes listed on the bourses have a certain fees to be paid annually and this cost is incurred from that particular scheme itself which in line comes from the pocket of the investor, Mr Damodaran said.

A senior UTI official said: “There is a huge demand from unitholders that UTI should open the repurchase window for all its schemes to fetch investors a better price as schemes listed on the bourses generally trade at a discount to its NAV. We may look into the demand of the investors”.

The official also said, “Not only the investors benefit through better price through repurchase but they are likely to get faster payment, within three days time, while from bourses the time taken is minimum of one week”.

Meanwhile, the UTI’s Mastershare on Wednesday closed 15 paise down at Rs 8.90 on the National Stock Exchange (NSE) with a volume of 1.08 lakh units and US-64 closed 10 paise higher at Rs 6.50 on the NSE as against its Tuesday’s NAV of Rs 5.97.

Investors can buy US-64 units from UTI’s window at a NAV price while the exit route has different slabs attached depending upon the number of years when the investment has made.

The exit load for US-64 varies with the date of investments, with investors over and above 5000 units the exit load is two per cent for investors who have invested in last one year, more than one year and less than two year the exit load be 1.5 per cent, more than two years and less than three year 1 per cent and over three years investors can exit at NAV price.

On Saturday, UTI announced its maiden NAV for US-64 at Rs 5.81 and also said it planned to delist the scheme from all the bourses and make UTI window as the only route for repurchase and resale.
Investors holding upto 5000 units on or before May 31, 2001 can surrender their units at the UTI window at the administered price of Rs 10.50 for January which goes on increasing 10 paise every month to a maximum of Rs 12 as on May 31, 2003.