OTHERS

Blow to small investors

Sir, - The Unit Trust of India (UTI), which has garnered large funds, finds itself in an unviable position with most of its funds, especially US-64 greatly eroded. The Centre in sacking its Chairman has acted rather belatedly and with the markets plunging all over the country, UTI funds have been affected, placing a large number of small investors and social and charitable organisations in a quandary.

The Centre has called for a ``complete review'' from the Chairman especially the decision to freeze the buying and selling of US- 64. A complete shake up of the UTI is necessary, failing which, people will lose faith in this organisation and will start looking at other options where their funds will be safe, liquid and profitable.

G.K. Francis,

Chennai

Sir, - The Unit Trust of India influences the direction of the stock market. Its untimely intervention in the market at crucial occasions has ruined many investors.

The plan to freeze repurchases and the sale of US-64 has badly affected small investors. The UTI decision will cast a shadow on the stock markets.

A thorough probe into the affair is needed because corruption in high offices of the UTI cannot be ruled out. The Government should take immediate steps to protect the interests of millions of small investors who have put their savings in US-64. Unless something is done urgently against UTI's action, it will be a death blow to small investors.

K.A. Solaman,

Alappuzha, Kerala

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Sir, - It is shocking that the US-64 scheme has almost reached the stage of insolvency. The middle-class investor, mostly retirees, understand now that they cannot expect any return from the scheme, not to speak of recovering the principal.

Matters concerning the scheme were not found to be commendable even two years ago and the Finance Ministry was aware of it.

Why did the management wait a whole year to find out that the reserves had registered a negative balance?

The Finance Minister has stated that the small investors' interest will be taken care of. The UTI should set its house in order without losing time, otherwise the consequences will be disastrous.

M. Nagarajan,

Chennai