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UTI suspends US-64 for 6 months; reserves may turn negative

The Unit Trust of India on Monday suspended sales and repurchase of its popular US-64 scheme for six months from Tuesday to restructure it in the face of volatile stock market.

Announcing the decision, UTI chairman P S Subramanyam told reporters this temporary suspension of the scheme till December 2001 would, however, not affect the liquidity of the scheme as it was listed in the wholesale market.

The measure has been taken as UTI feared that the reserves under the scheme "might turn negative" in the wake of downward trend of its net asset value, he said.

UTI also announced a dividend of 10 per cent (Re 1 per unit) for 2000-01.

Earlier, UTI said that reserves of its flagship scheme US-64 may be negative for 2000-01.

P S Subramanyam told a news conference in New Delhi: "We don't know as yet. We are still calculating the figures. But they might turn negative for the past year."

Additional inputs: PTI

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