Financial Daily from THE HINDU group of publications
Saturday, Nov 23, 2002
Financial Daily from THE HINDU group of publications Saturday, Nov 23, 2002 |
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Markets
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Asset Management Companies UTI-II asset management co registered — Stakeholders await RBI, SEBI nod Our Bureau
NEW DELHI, Nov. 22 THE new asset management company that will take over UTI-II has been registered. Its stakeholders, Life Insurance Corporation of India, State Bank of India, Punjab National Bank and Bank of Baroda, were now awaiting the nod from Reserve Bank of India and the Securities and Exchange Board of India to commence operations, the Finance Secretary, Dr S. Narayan, said on Thursday. "The new asset management company has been registered. The stakeholders are now waiting for permission from RBI and SEBI to start operations," he said after a meeting with the Unit Trust of India Chairman, Mr M Damodaran. The chief executives of SBI, PNB and BoB met the Finance Secretary to apprise him about the progress on the new AMC that will take over the net asset value-based schemes of UTI. Mr Narayan said all the net asset-based schemes of UTI would be transferred to the new AMC, as provided for in the Ordinance. The NAV-based schemes of UTI is estimated to have a corpus of about Rs 17,000 crore. Immediately after the Cabinet decision to repeal the UTI Act of 1963 and splitting the fund into two, LIC, SBI , PNB and BoB decided to form an AMC, holding equity stake of 25 per cent each. Recently, the Government issued an Ordinance to hasten UTI restructuring. A Bill to repeal the UTI Act would be introduced in Parliament this winter session. The new AMC was expected to start with an initial capital of Rs 10 crore and would be headed by a professional, who would be offered market-linked pay package. The Government intends to privatise the UTI-II while managing the old US-64, which has been renamed US-2002.
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