The government is likely to issue bonds guaranteed by it and carrying 6.75 per cent tax-free returns to investors of the seven assured return schemes of UTI-I that are being foreclosed. The bonds will be similar to those issued for US-64.
For the MIP 98 (III) scheme, maturing on August 31, the government is planning to allow unitholders to accept the redemption amount either in cash or in bonds. The maturity value of this scheme is estimated at Rs 1,611 crore.
The government proposes to foreclose seven UTI schemes