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FI, bank bosses meet UTI chief to fine-tune US-64 package

Acting UTI chairman K G Vassal on Friday had a detailed meeting with chiefs of LIC, banks and financial institutions to fine-tune the special package for US-64, UTI flagship scheme which has been frozen for six months.

Official sources said this meeting was a follow-up to the three-hour discussions the UTI officials had on Thursday with Union Finance Minister Yashwant Sinha to thrash out the special package that is to be finalised by the UTI board in Bombay on Saturday.

The special package is likely to provide an exit option to 20 million investors in the US-64 scheme that was frozen on July 2 after the massive redemption of over Rs 40 billion in April-May this year.

Various options have been considered for the package, including a loan from the public sector banks, financial institutions and the Life Insurance Corporation.

Union Finance Minister Yashwant Sinha has said that the budgetary support is not desirable though government was open to all options to bailout UTI.

Sinha has made it clear that the top priority would be to come out with a special package to restore the confidence and protect the interests of small investors in the US-64 scheme.

All other issues pertaining to UTI will be dealt with subsequently, he said.

He has also decided to set up an independent enquiry into the entire UTI muddle leading to suspension of US-64.

Sinha had blamed the former chairman P S Subramanyam for keeping the ministry in the dark about the developments.

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