MUMBAI, Oct 29: In order to regain the confidence of the small investors, for the first time, the Unit Trust of India (UTI) has announced the buying and selling price for two months for its flagship - Unit Scheme-64.The Trust has hiked the sales and repurchase price of its US-64 by 15 paise for the month of November at Rs 14.70 and Rs 14.40, respectively. Simultaneously, UTI has also announced the sale and repurchase price for December 1998 at Rs 14.80 and Rs 14.50, an increase of 10 paise, says a UTI statement.
The scheme, having eroded its net worth currently, faces a crisis of confidence and the 30 paise increase in its repurchase price is being seen by market sources as a confidence building measure. ``The idea is to stop the redemption by the investors,'' said a UTI official.
The sale and repurchase price in September, when the crisis broke out, was Rs 14.40 and Rs 14.10, respectively. Redemptions in the last month have crossed over Rs 800 crore.
Copyright © 1998 Indian Express Newspapers(Bombay) Ltd.
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