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Investment in US-64 scheme of UTI

Investment in US-64 scheme of UTI – March 26, 2002
March 26, 2002
All Housing Finance Companies
Dear Sir,
Investment in US 64 scheme of UTI
Following requests from several Housing Finance Companies ( HFCs) regarding the valuation of their investment in units of US 64 Scheme of UTI, the issue has been examined in the context of the valuation norm prescribed in the Housing Finance Companies (NHB) Directions, 2001
2. In the light of the Government of India’s press release dated December 28, 2001 that US 64 units can be redeemed on May 31, 2003 either at Rs.10 or at Net Asset Value (NAV) as on that date, which ever is higher, it has been decided, to permit HFCs, which desire to do so, to carry their investments in units of US 64 as long-term at book value, subject to the following conditions:
a) HFCs will be required to amortise the premium over the face value over a period upto May 31, 2003.
b) HFCs will not be allowed, for any reason, to sell/shift these before the redemption date, i.e. May 31, 2003 either in part or full.
Yours faithfully,
(Radhey Shyam)
Executive Director