UTI US-64 crisis (2001)

Tue, 12 May 2026 00:00:00 +0000

The UTI US-64 crisis of July 2001 was a systemic failure of Unit Trust of India’s flagship US-64 scheme that forced an emergency suspension of repurchases, a government-funded bailout exceeding Rs 14,500 crore, and a fundamental restructuring of India’s oldest and largest mutual fund organisation. The crisis exposed the dangers of offering guaranteed or price-supported returns to retail investors through vehicles that lacked mark-to-market accounting, concentrated equity exposures, and transparent governance. It triggered the eventual dissolution of UTI as a unified statutory body, compelled sweeping regulatory amendments by the Securities and Exchange Board of India , and reshaped investor expectations of the mutual fund industry in India for the subsequent decade.

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UTI US-64 crisis (2001)