Govt Issues 6-yr UTI Bonds Worth Rs 328 Cr

New Delhi, March 24 | Updated: Mar 25 2004, 05:30am hrs
The government on Wednesday issued special 6-year bonds worth Rs 328 crore for meeting Unit Trust of Indias shortfall in assured return scheme.

The government of India UTI bonds carries interest rate of 6.2 per cent and matures on 2010.

In a statement, the finance ministry said the bonds have been issued to the administrator of specified undertaking of UTI (SUUTI) for meeting their liabilities arising on account of shortfall in assured return scheme.

The investment in the UTI bonds will bot be eligible for statutory liquidity ratio (SLR) of banks and FIs.

The bonds can be transferred and eligible for market ready forward or repo transactions. However, it will not be eligible for repo or reverse repo transaction with RBI.

The UTI bonds are being issued to give investors a choice of switching either to debt papers yielding high returns or taking cash for those schemes which are being foreclosed before their maturity date.

Earlier, it was decided that the government will issue6.6 per cent tax-free bonds aggregating up to Rs. 5,000 crore to investors for the seven assured return schemes of UTI that are being prematurely closed this fiscal.