BUSINESS

UTI AMC sale to 4 sponsors cleared

Transfer likely to become effective from Oct. 1

Special Correspondent

NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Thursday gave its nod for the much-awaited sale of UTI Asset Management Company (AMC) to three state-owned banks — State Bank of India, Punjab National Bank and Bank of Baroda — and the Life Insurance Corporation of India (LIC) for a consideration amount of Rs. 1,236.95 crore. The transfer is to be made effective possibly from October 1.

Explaining the stipulations involved in the sale transaction, Finance Minister P. Chidambaram told newspersons after the CCEA meeting that the three banks and the LIC, which had been selected as sponsors, would not be permitted to transfer their equity stake in UTI AMC to any other entity without the prior approval of the Government.

The Government, it may be recalled, had selected the four public sector entities as sponsors of UTI MF (Mutual Fund) and they, in turn, formed UTI AMC by contributing Rs. 2.50 crore each as capital totalling Rs. 10 crore.

On the winding up of UTI-I, the entity which was handling all the assured return schemes including the flagship US-64, Mr Chidambaram said it would be wound up after liquidation of its assets, which were enough to meet the liabilities.

2 NELP-V blocks awarded

The CCEA also approved the award of the two remaining blocks — one each in Assam and Arunachal Pradesh — out of the 20 blocks offered under the `New Exploration Licensing Policy-V' (NELP-V). In all, 18 blocks were awarded to successful bidding companies earlier this month.

SCI's purchase approved

The CCEA has allowed the Shipping Corporation of India (SCI) to go ahead with the purchase of two `Very Large Crude Carriers' (VLCCs) at a price of Rs. 568.04 crore each.

Kyoto customs convention

To facilitate increased global trade, the Union Cabinet, meanwhile, approved accession to the `Protocol of amendment to international convention on simplification and harmonisation of customs procedures adopted by World Customs Organisation in 1999. Simplified customs procedures, the release said, would facilitate global trade and enhance global economy without compromising the revenue, control and security functions of the customs.

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