UTI-ISL is also fast emerging as a sheltering ground for staff belonging to UTI.
Speaking to the FE, a top UTI official said: Over 300 staffers from UTI have been deputed to UTI-ISL and everyone is fully occupied, following some large assignments which we have been received from UTI. He added: Recently, we got the R&T work of US-64, US-2002, ULIP and CGGF. All these schemes earlier were handled inhouse by UTI.
The UTI official said: Down the line we also expect R&T work of some popular schemes of UTI like; Mastergain-92, Masterplus-91, UGS-10000. Currently, Mastergain and Masterplus are handled by Datamatics and UGS by Tata Consultancy. These entail handling over two crore investors.
Following these new assignments, UTI-ISL has become the largest R&T agent in the country. The UTI official said: The R&T arm of UTI is in talks with various parties outside UTI. UTI-ISL is a 100 per cent subsidiary of the mutual fund major. Official sources said: Around 6 staff from UTI-II has also been deputed to UTI Securities Exchange Ltd.
Till date, over 300 staff of UTI have been deputed to UTI-ISL in the last few weeks. Earlier, the mutual fund behemoth shifted a select group of its top officials from UTI to UTI-ISL, the registrar and transfer (R&T) agent for most schemes belonging to UTI. It had also UTI nominated its executive director (ED) BS Pandit as the Chief Executive Officer (CEO) of UTI-ISL with effect from October 31, 2002 and along with him three senior vice-presidents and five vice-presidents were also deputed to UTI-ISL.
It appears that in the aftermath of the promulgation of UTI ordinance in October 2002, a major restructuring is clearly being witnessed in the countrys largest mutual fund, mainly in the area of reshuffling its staff.
The pattern of reshuffle clearly hints that UTI-ISL is likely to absorb a big portion of UTIs staff.
Following the repeal of the UTI Act, UTI will be bifurcated in two parts UTI-I, which houses US-64 and the assured return schemes of UTI and UTI-II which will shelter non-assured schemes. All staff of UTI will be moved to UTI-II once the appointed date is fixed. Both Houses of Parliament have already cleared the UTI bifurcation. In the last few days, along with UTI-ISL, the MF has also added its broking and investment subsidiary UTI Securities Exchange Ltd (UTISEL) in the list, where it has deputed UTI staff.
In line with the plans to expand UTI-ISLs business, UTI has decided to lease its Belapur data centre Central Processing Centre (CPC) and Central Data Centre (CDC) and also the Hyderabad-based Business Continuity Centre (BCC) to UTI-ISL.
However, the UTI official said: Though the staff of UTI is deputed to UTI-ISL, there is no material change in service conditions. The deputed staff will continue to remain under UTI head count.
The associate company/subsidiary of UTI where deputation of UTI staff can be made includes, UTI-ISL, UTI Institute of Capital Markets (UTI-ICM), UTI Bank, UTI Investment Advisory Services Ltd (UTI-IAS), UTI Securities and Exchange Ltd (UTI-SEL), UTI Venture Fund Management Company and UTI International Ltd.