UTI launches offshore fund

By Our Special Correspondent

MUMBAI, APRIL 10. The Unit Trust of India has launched an offshore fund, The India Media, Internet & Communications Fund Ltd. The total corpus of the fund is $60 million. The fund enables the shareholders to gain exposure to securities of media, Internet and communication related companies in the Indian market.

Subscriptions are being raised in two tranches. The investors have already made contributions to the first tranche. The second tranche is expected to be called within 3 months by which time the existing first tranche is expected to be invested fully, stated a UTI press release.

The India Media, Internet and Communications Fund is a closed-end fund. It is expected to be made open-ended by June 2001. The placing of the fund was done by SG Securities (London) and SG Cowen Securities Corporation of the U.S. The fund has been incorporated and registered in Mauritius on March 24 and is listed on Irish Stock Exchange.

The fund will be able to invest both in listed and unlisted stocks. The emphasis is expected to be on the equity securities of companies involved directly or indirectly in Internet, e- commerce, communication and or media activities.

Mr. P. S. Subramanyam, Chairman, UTI, said among the emerging markets, India was well poised to play a dominant role in the development of ``New Economy' business having established an enviable position at the forefront of the information technology revolution. He also said that environment was therefore ripe for the continued development of business involved in media, Internet and communication in India and that such business should also be well positioned to benefit from convergence and consolidation amongst themselves.

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Section  : Business
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