T Rowe Price International, which had filed a petition in the Bombay High Court against the government, the Securities and Exchange Board of India (SEBI) and the four public sector promoters of UTI Mutual Fund, has withdrawn the petition stating that it is in talks with the government on certain issues raised in its plea.
“TRP is still in talks with the government and we are seeking to withdraw the petition with the liberty to file it again if it requires,” said Fredun De Vitre, the senior counsel appearing for the U.S.-based shareholder of UTI MF.
The lawyer added that the government has addressed some of the issues raised in the petition and also given certain assurances. The division Bench comprising justices B.R. Gavai and M.S. Karnik allowed T Rowe Price to withdraw the petition and disposed of the matter.
T Rowe Price, which has a 26% stake in the domestic mutual fund, moved the Bombay High Court seeking a directive for the four government-owned shareholders — State Bank of India, Punjab National Bank, Life Insurance Corporation and Bank of Baroda — to reduce their respective stakes to 10% each. Currently, each of the four entities has a stake of 18.24% in UTI MF.
The foreign investor also wanted to the court to grant an extension to the former managing director Leo Puri whose term ended on August 13. According to T Rowe Price, the four government-backed shareholders of the fund house were not in favour of another term for Mr. Puri.
