Leo Puri, MD & CEO of UTI Mutual Fund, has called for a meeting of the senior management of the fund house on Monday to officially announce his decision to not seek an extension as the head of the country’s oldest fund house. Mr. Puri’s tenure ends on Monday.
According to people familiar with the development, Mr. Puri has already emailed his decision to not seek an extension, to the firm’s shareholders. The decision comes amid an ongoing legal battle between the promoters of UTI MF and T Rowe Price filing a petition in the Bombay High Court against the other shareholders namely State Bank of India (SBI), Life Insurance Corporation of India (LIC), Punjab National Bank (PNB) and Bank of Baroda (BoB).
T Rowe Price, which holds 26% in UTI MF, has asked the court to direct the other promoters to pare their stakes to 10% each — in line with SEBI regulations on ownership of mutual funds. SBI, LIC, BoB and PNB each hold 18.24% in UTI MF. Mr. Puri’s decision to step down assumes significance as the court will hear T Rowe’s plea on Monday.
The petition also seeks court direction to allow an extension to Mr. Puri even as other shareholders are reportedly against it. A spokesperson for T Rowe Price declined to comment on Mr. Puri's decision and whether that would affect the court battle.
