COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

UTI will meet its obligations, declares Sinha

Finance Minister Yashwant Sinha today said the government will fully back the Unit Trust of India which had adequate liquidity to meet its commitments to investors.

The minister was addressing a meeting of the consultative committee on finance, whose members had expressed concern on media reports about Unit Scheme 64 of the UTI.

Sinha said the dividend under US-64 was out of the net income generated under the scheme.

The finance minister said the UTI was a vehicle for small investors to participate in the capital market and reap benefits of their savings and investments. He mentioned that the investor base of US-64 was over Rs 20 million. ''The government is fully behind the UTI in protecting the interest of investors,'' he added.

All the members of the consultative committee were unanimous that investors' interests should be protected.

Earlier, members cutting across party lines complimented the minister for his timely assurance that government fully backs the UTI and unanimously approved the stand taken by the Centre with regard to US- 64.

Today's consultative committee meeting discussed the issue of sanctions and government's response to it. The members were informed that over a period of time the intensity of sanctions had got diluted as there was increasing realisation that those who impose sanctions suffer equally if not more.

The finance minister infomed the members that the foreign debt and portfolio investments had not been affected significantly by the sanctions. He said the Resurgent India Bonds scheme had an overwhelming response and established India's ability to raise money in the international market at a time when all over the world there was economic turbulence.

UNI