Jitesh Khosla, seen as the top contender to head UTI Mutual Fund, has expressed his desire to retain his lien with the government as IAS officer, post selection. Both M Damodaran and UK Sinha, previous IAS officers who served as chairmen, had left the civil service on assuming their new posts at UTI.
This is one of the issues to be decided soon by the five shareholders of the company ? State Bank of India, Punjab National Bank, Life Insurance Corporation, Bank of Baroda and T Rowe Price. It may need a change in UTI MF?s articles of association, which sources said would not be too difficult.
The other is a demand by public sector institutions to change the shareholders? agreement. The agreement was amended when private investment firm T Rowe Price came on board. A source in the company confirmed that there is disquiet on the issue, but declined to discuss further details.
The final interviews for the post of CMD were held on October 1 by the representatives of the shareholding companies. Once a decision is taken on the lien issue, it will be sent to the board for approval.
Among the six-member board (after Prithvi Haldea?s resignation), only one, from T Rowe Price, and a representative from head-hunter Egon Zehnder were present in the interviews to select the chairman & managing director.
Meanwhile, as indecision rules at UTI MF, one of India’s 44 mutual funds, the company continues its slide as the Sebi has barred it from launching any new scheme. It is now ranked fifth, down from its No.4 position till the June quarter. Industry figures for July-September show it is now ranked below Birla Sun Life.