The Hindu Business Line : `UTI-I has set aside assets to repay bonds'

THE Finance Minister, Mr P. Chidambaram, said the Specified Undertakings of the Unit Trust of India (SUUTI) has set aside assets to repay the 6.75-per cent US-64 bonds and the 6.6-per cent Assured Returns Scheme (ARS) bonds issued in May 2003. The bonds, which were issued as part of the restructuring process of the erstwhile Unit Trust of India, would mature in 2008-09.

"SUUTI has issued tax-free bonds (the two types of bonds) to the tune of Rs 14,500 crore which are guaranteed by the Government. Assets have been set apart to meet this commitment," Mr Chidambaram said here on Friday.Mr Chidambaram was speaking at a function where the four sponsors of UTI Mutual Fund (LIC, SBI, PNB and BoB) handed over the consideration to the Government to take over control of the fund.

"Today is the culmination of Government's efforts to restructure UTI. UTI AMC will (now) run as a private sector mutual fund competing with the rest of the industry under the regulation and supervision of SEBI," Mr Chidambaram said.

The four sponsors handed a total amount of Rs 1,239.95 crore to the Government, with each paying a quarter of the amount.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

More Stories on : Mutual Funds | Corporate Bonds

Stories in this Section
Next round of rains likely from tomorrow

Cheaper metals check inflation

Ranbaxy seeks directive on generic manufacture of Tamiflu

`UTI-I has set aside assets to repay bonds'

Maharashtra hardens stand, issues notices to banks on stamp duty dues

Wipro Infotech getting more mid-size total outsourcing deals

Banks to keep rates steady: Chidambaram
RBI to issue guidelines on Tier-III hybrid capital soon

Branson to unveil `creative business' project next week — Media/entertainment foray likely

C-DAC project draws interest at Tunis meet

Talking computers the kids way