Govt seeks specific recast proposals from UTI

Mumbai, Aug 31: The government has asked the Unit Trust of India (Unit Trust of India) board to present comprehensive proposals for restructuring schemes and its working to avoid reappearance of problems faced by the country’s largest fund manager in 1998 and 2001.

Jaimini Bhagvati, a newly appointed government nominee and joint secretary in the finance ministry, who attended the board meeting for the first time, conveyed that plans should be exhaustive to ensure better working, Unit Trust of India sources said.

The trustees also reviewed functioning of various schemes with asset of over Rs 54,000 crore under their management, they said.

The specific proposals for restructuring would be framed only after studying the report by corporate positioning committee headed by YH Malegam which is expected to submit its report by middle of next month, they added.

The Unit Trust of India chairman M Damodaran, who had taken charge of the public sector mutual fund behemoth following the stepping down of Mr P S Subramanyam, said that the fund would set up one or more asset management companies to manage different funds which could be only possible with suitable amendments to the Unit Trust of India Act.

-- PTI