6.75% tax-free bonds to be freely tradable
The finance ministry today said UTI-I would give US-64 investors an option to convert their holdings into 6.75 per cent tax-free secondary market tradable bonds. Investors can exercise the bond option between March 15 and April 4. US-64 in its present form will be terminated with effect from June 1.
Finance Secretary S Narayan told reporters that investors preferring the cash option would have to explicitly say this in their option letter that UTI-I would send them within the next two days. The bonds to be issued in May will be redeemable after five years.
M Damodaran, administrator for UTI-I, said UTI-I would not sell securities in today
