The Hindu : No more assured return schemes by UTI

Online edition of India's National Newspaper
Tuesday, Apr 09, 2002

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No more assured return schemes by UTI

NEW DELHI APRIL 8. The Unit Trust of India today said it will not launch any more assured return schemes such as the US-64, and the mutual fund will be made fully SEBI-compliant by December end by legislative changes in the UTI Act.

"UTI will not launch any more assured return schemes. The intention is to offer pure mutual fund schemes to pure mutual fund investors,'' the UTI Chairman, M. Damodaran, told reporters after a meeting with the Economic Affairs Secretary, C. M. Vasudev, here.

He allayed fears that there was any redemption pressure for the closed ended scheme maturing in the coming months.

According to SEBI norms, a mutual fund must have three tier structure comprising a sponsor, trustee and Asset Management Company (AMC).

The UTI would be converted into an AMC as recommended by the Malegam and Tarapore committees, Mr. Damodaran said With these initiatives, Mr. Damodaran hoped that the UTI would retain the current 50 per cent market share in coming years.

— PTI

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