UTI considering all options

By Our Special Correspondent

NEW DELHI, JULY 13. The acting chairman of the Unit Trust of India, Mr. K. G. Vassal, and other senior officers continued their meetings with banks and financial institutions to finalise a package for the US-64 investors. The scheme had been suspended since July 2 for six months, but the Finance Ministry has now asked UTI to find out an exit option for small investors who want to withdraw their investments.

Various options are being looked at by the UTI, including the possibility of borrowing money from banks and financial institutions to fund the redemptions since the reserves of the US-64 scheme have turned negative.

A bailout package is also under consideration though the Finance Minister, Mr Yashwant Sinha, has said it is ``not a good thing'' to use budgeted Government funds to bail out bad managements.

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Section  : National
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