The Unit Trust Of India (UTI) on Monday announced that it has decided that the units of its flagship Unit Scheme-64 issued on or before June 30, 2001, either held by the original unitholders or by the buyers of these units in the secondary market after reopening of trading will be treated as tax-free, tradeable bonds with effect from June 1, 2003.
In a notice to stock exchanges, UTI said these bonds will mature on May 31, 2008 and the bondholders will be paid interest on their holding at such rate and frequency (i.e. half-yearly, yearly) which will be announced later.
Further, the existing special price repurchase/nav based price repurchase facility for unitholders in below 5000 units/above 5000 units categories will continue.
Unitholders holding units issued on or prior to June 30, 2001 represented by unit certificates/ statements of account/ membership advices, wishing to sell their unitholdings in the secondary market are requested to follow the procedure announced earlier.
