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UTI officials sweat it out

Our Bureau

MUMBAI, July 9

UNIT Trust of India (UTI) officials were busy working and re-working on the draft proposal to solve the liquidity issue with regard to individual investors in its largest scheme, US-64. The officials, including five Executive Directors and the acting Cha irman, Mr K.G. Vassal, were closeted in long meetings till late evening after the board meeting earlier in the day.

The officials were preparing draft recommendations for board which is expected ``to meet again in a couple of days.'' Their worry is that they do not want to suggest proposals which could backfire.

``The proposal would be absolutely foolproof after taking into consideration liquidity of investors, market liquidity, volatility in equity markets and more or less fixed time-frame to bring the scheme back on the performance track,'' insiders said. This could also include portfolio shuffling of some senior officials.

The officials declined to give any indications about the proposals.

The board of trustees met today to consider various alternatives to provide liquidity to small investors in its beleaguered US-64 scheme. UTI in a written statement said that the trustees met to debate on the alternative proposals prepared by the UTI man agement to give an exit to small investors.

UTI further said that the board desired to have further information before any recommendations could be made (to the Ministry of Finance). ``The board will meet again in a couple of days to continue the discussions,'' UTI said.