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NEW DELHI, Dec. 3

PARLIAMENT has given its nod for the bifurcation of Unit Trust of India into two companies -UTI-I and UTI-II - with the Rajya Sabha on Tuesday giving its assent to the UTI (Transfer of Undertakings) Bill, 2002 by a voice vote. The Bill has already been passed by the Lok Sabha.

Addressing the Rajya Sabha, the Finance Minister, Mr Jaswant Singh, assured that the Government would meet its commitments to the investors.

The Finance Minister said that UTI-I will not float any new scheme and all existing commitments would be met by the Government, while UTI-II would be started as a SEBI regulated, asset managed and market competing scheme.

He assured the House that there would be no retrenchment of UTI employees. "All of them would be put on the UTI-II attendance register with an option that they could take six months to decide if they wanted to take voluntary retirement."

Mr Singh added the employees could also be considered for absorption in the newly set up UTI Bank in which State Bank of India and Punjab National Bank would have investments.

He informed the House that the process has already been started to punish the guilty responsible for mismanaging UTI affairs. "The matter has already been referred to the Central Bureau of Investigation and nobody will be spared if found guilty," said Mr Singh.

Earlier, the leader of the Opposition in the Rajya Sabha, Dr Manmohan Singh, withdrew the Opposition-sponsored statutory resolution paving way for the passing of the Bill.

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