• PAGE ONE
• INDEX
• HOME

Package deal for investors eludes UTI

MUMBAI, July 14

IT was an anti-climax for anxious investors and mediapersons who had gathered at the UTI office here today expecting the announcement of a package to bail out US-64 unitholders.

The board of trustees of Unit Trust of India

which met for the fourth time over the week, along

with the consultative group formed earlier, however, could not find any definite solution to the US-64 imbroglio.

After the day-long meeting, UTI said in a written statement that the trustees needed more information to be able to refine the package being worked out to address the liquidity needs of small investors.

The surprise element in today's meeting was the presence of Mr P.V. Narasimham, Chairman and Managing Director of IFCI Ltd. His presence at the board meeting gave rise to speculation that he may be appointed chairman of UTI. The speculation gained creden ce as the Finance Ministry had earlier said that the proposals on a full-time chairman and on providing liquidity to small investors were likely to be cleared by the weekend.

But neither was announced. "The board will meet soon to continue the deliberations," UTI stated.

"UTI or the Finance Ministry have not zeroed on any particular proposal," a UTI source told Business Line. He said that the dialogue between UTI and the Ministry will continue for some time before a concrete proposal is framed for implementation.

The board of trustees is understood to have considered the alternative proposals after the feedback received from Ministry officials in this regard.

The UTI management team, led by the Acting Chairman, Mr K.G. Vassal, and some of the trustees had been having meetings with Ministry officials over the last two days. -- Our Bureau