Unit Trust of India (UTI) is likely to transfer realty assets worth Rs 850 crore, accounted under its flagship US-64 scheme, to the Development Reserve Fund (DRF) even as it plans to launch an open-ended monthly income plan (MIP) to provide liquidity to the investors.
UTI executive director B G Daga said, after UTI top brass met representatives of Investor's Forum, "The decision to shift the real estate assets is for reducing the cost burden on the US-64 and these assets are likely to be transferred to DRF."
The current corpus of DRF is pegged at Rs 1500 crore, he added. About 28 representatives from 14 investor organisations attended the meeting.
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Daga said the investor organisations had demanded that the special window for repurchase of US-64 should be increased to 3,500 units for senior citizens and a special scheme for switchover to other UTI schemes without incurring any loss be formed.
Daga added, "We will submit the application for monthly income plan to Sebi in two days time," adding the groundwork for the MIP was in place and the scheme will be launched immediately on getting the nod from the market regulator.
Asked about the total redemption under limited repurchase window for US-64 investors, Daga said that 100,000 investors have applied for redemption of units worth Rs 125 crore and average application comes to 1,200 units.