The Telegraph
Since 1st March, 1999
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UTI clone readies exit package

New Delhi, Jan. 23: The Rs 15,000-crore Unit Trust of India Mutual Fund, earlier known as Unit Trust of India-II (UTI-II), will soon offer a voluntary retirement scheme, targeting some 20-25 per cent of its 2,500 employees.

The UTI Mutual Fund is currently operated by an asset management company floated by State Bank of India along with Life Insurance Corporation, Bank of Baroda and Punjab National Bank with a capital infusion of Rs 2.5 crore each.

“We will offer VRS to around 20-25 per cent of our employees,” a top finance ministry official told The Telegraph when asked if a VRS is in the offing for the fund employees.

“The final decision on the VRS offer will be taken after the AMC board comes into operation on February 1,” the official said.

The government recently handed over management control of UTI-II comprising 43 net asset value (NAV) schemes of the parent Unit Trust of India, to the AMC.

The official also said as per the report of the joint parliamentary committee probing the stock market and UTI scam, the finance ministry will come out with specific management guidelines in March for these sponsoring institutions.

The JPC had voiced concerns about the equity holding of Life Insurance Corporation (LIC) and State Bank of India in the recently formed asset management company.

“There is an inherent conflict of interest as regards these sponsoring institutions and the need for these institutions to separate themselves from UTI,” the JPC report had said.

But finance secretary S. Narayan had clarified that ‘the finance ministry has examined the matter and is comfortable with the fact that there are no conflicts of interest'.

“The instructions of the JPC will be followed and we will be issuing guidelines on UTI-II,” Narayan said.

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