Subramanyam said that the UTI has not issued any "diktat" to companies seeking representation on their board but has only sought to ascertain the extent of proper enforcement of governance.

The chairman of the country's largest asset-management company said: "UTI believes that corporate governance is a crucial issue, and, hence, we have shot off letters to some leading corporates to enquire what they have achieved in enforcing corporate governace in their respective companies."

"The letters, in sync with our objective, attempts to put forth to these companies UTI's perspective in terms of governance," Subramanyam said.

It is understood that the letters, "more in the nature of a survey", seeks updatesfrom companies on details as to how governance is enforced, adequate presence of independent directors, as well as formation of different committees such as ones on audit, remuneration, appointments, legal and others.

Subramanyam told The Financial Express that UTI has "only sought an opinion" on whether appointment of trust's nominees on the board of these companies could enforce corporate governance in a more efficient manner.

"The question of issuing diktats to some companies seeking board representation just does not arise. We would only like to know how the companies feel about having a UTI nominee on their board," he said.

Subramanyam said: "After we receive responses from these companies we have to discuss how many companies have been able to address the governance issue. In companies, where the board has done enough the appointment of UTI nominees does not arise."

"In cases where the companies are some a way off we have got to decide what else needs to be done. Maybe we can begindialogues with such companies to ensure proper enforcement of governance," he said.

Subramanyam also pointed out that the letters were despatched not on the basis of UTI holding in them but more on their importance in the Indian corporate sector.

UTI has holdings of 5 per cent and above in around 200 companies, with some of the leading companies lying towards the bottom of the list in terms of trust's holdings in them.