The Hindu : UTI panel to study JPC report

Online edition of India's National Newspaper
Tuesday, Dec 24, 2002

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UTI panel to study JPC report

MUMBAI DEC. 23. The board of Unit Trust of India today formed a three member sub-group to study the Joint Parliamentary Committee's report on UTI and suggest an action plan in about a month's time.

"The trustees considered the JPC report and formed the sub-group, M. R. Mayya, S. Bhojani and P. N. Shah, who will study the report, including recommendations, and present an action plan to be presented at the next board meeting,'' UTI sources said after a meeting here.

The JPC, in its report, said the problems faced by the country's largest fund manager were concentration of power in chairman's hand without adequate checks and balances to prevent misuse.

The Industrial Development Bank of India, a principal contributor to UTI corpus, neglected its duties, the JPC said adding the UTI management and the government were unwilling to amend regulations to restructure the institution and bring it under the purview of the Securities and Exchange Board of India. The trustees gave in-principle nod to convert its Mastershare scheme into an open ended fund and now we would approach SEBI to convert the scheme into open ended fund, they added.

As on December 12, the fund size is Rs. 1,020 crores and the net asset value was Rs. 11.18 per unit. In October, the fund made an income distribution at the rate of 10 per cent to its unitholders.

Mastershare was launched in September 1986 to provide capital appreciation and regular income distribution through equity and equity related investments.

PTI

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