Financial Daily from THE HINDU group of publications
Friday, Aug 09, 2002
Financial Daily from THE HINDU group of publications Friday, Aug 09, 2002 |
|
|
|
|
|
Markets
-
Mutual Funds GoM endorses US-64 bail-out, UTI revamp Our Bureau
NEW DELHI, Aug.8 THE Group of Ministers (GoM) has endorsed the proposal for a bail-out of US 64 and restructuring of the Unit Trust of India. The proposal will now be considered by the Cabinet Committee on Economic Affairs (CCEA) for final approval. According to the Finance Minister, Mr Jaswant Singh, the UTI issue will be referred to the CCEA shortly. "I stand by my assurance made in Parliament to make efforts to rejuvenate the UTI, IFCI and IDBI," he told newspersons here on Thursday after the GoM meeting. Both the other members of the GoM, the Deputy Chairman of the Planning Commission, Mr K.C. Pant, and the Minister for Disinvestment, Mr Arun Shourie, attended today's meeting. With the GoM endorsing a bail-out and restructuring of UTI, the final political clearance will have to be given by the CCEA. The CCEA will consider a proposal to provide support to the UTI in order to fulfil its commitment to the unitholders of US-64. In May 2003, the Government will undertake to make good the difference between the assured repurchase price and the NAV. On current reckoning, the cost of providing support to the UTI on this count alone will be Rs 5,000 crore. The Finance Ministry's package envisages providing support to the assured return schemes of the UTI also. According to a senior Finance Ministry official, once the Cabinet approval is obtained, the Ministry will work on various options for the UTI. These include making UTI SEBI-compliant by setting up a three tier-structure, providing support to the new sponsors for fulfilling the obligations arising on account of the assured return schemes and repeal of the UTI Act.
Send this article to Friends by E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|