TT Epaper
The Telegraph
TT Photogallery
 
CIMA Gallary

UTI Mutual for share rejig

Leo Puri in Calcutta on Tuesday. Picture by Kishor Roy Chowdhury

Calcutta, Aug. 5: UTI Asset Management Company is keen on a rejig in shareholding so that the mutual fund can become an independent asset management company.

UTI Mutual Fund was set up in February 2003, carved out of the erstwhile Unit Trust of India through the Unit Trust of India (Transfer of Undertaking and Repeal) Act 2002.

Three public sector banks – the State Bank of India, Bank of Baroda and Punjab National Bank — promote the company along with the LIC India. Each has an 18.5 per cent stake, while the remaining 26 per cent is with US investment management firm T. Rowe Price.

“What is clear is that our current shareholding structure needs to evolve because we have been asked by Sebi to evolve a structure where we are not in a conflict of interest with our sponsors,” said Leo Puri, managing director of UTI Asset Management Company.

“I do believe that it would be healthy for us to evolve the shareholding structure. Whether that is done through an IPO or other form of shareholder development is a call for the shareholders and the government. We do want to be an independent asset manager. So whatever structure gets us to that outcome would be great for us,” Puri said.

The four public sector shareholders or sponsors have mutual fund operations of their own and the capital market regulator had said there should not be any conflict of interest because they are in the same business.

Puri said he was in favour of a direction on the restructuring within 12-18 months. “I would like to see it happen within 12-18 months. That is my perspective and not a specific timeline.”

The mutual fund company is looking to launch a close ended equity scheme called UTI Focussed Equity Fund Series I (1100 days).

 
 
" "