UTI
AMC GOES TO ITS SPONSORS LOCK, STOCK, BARREL
THE country's largest
mutual fund is changing hands. The four sponsors of UTI Asset
Management Company - SBI, Punjab National Bank, Bank of Baroda
and LIC got government approval for becoming its owners from
October 1. The Cabinet Committee on Economic Affairs cleared
the sale to the four PSUs for Rs 1,236.95 crore on the condition
that there would be no transfer of UTI AMC shares among themselves
or to any other entity without prior government permission.
This has been done
to retain its public sector character. The company has an
asset under management size of almost Rs 22,000 crore.The
Cabinet note makes it clear that the sponsor institutions
would be indemnified against all claims pending as on date
on account of activities of erstwhile UTI prior to February
1, 2003. This had become necessary as it was on that date
that UTI was split into UTI AMC and the Specified
Undertaking of UTI (SUUTI) as a fall out of the stock market
scam of 2001.
SUUTI, which retains
all the defunct assets and schemes of the erstwhile UTI, including
US-64 will also be wound up eventually, Mr Chidambaram said.
"It will happen after liquidation of assets to meet the
liability," he added.
The CCEA also approved the acquisition of two very large crude
carriers of about 3 lakh DWT each at $129.10 million per vessel
by SCI, which has been permitted to seek financing up to 80%
of the contract price of each vessel. The loan may be sourced
either from the domestic or international market. The balance
would be met by SCI from internal resources.
The CCEA also approved
award of two blocks under NELP-V - one in Assam and the other
in Arunachal Pradesh. It also approved enhancement of monthly
wage limit to Rs 3,500 from Rs 2,500 with effect from April
1, 1993 instead of February 5, 2002 under the Textile Workers'
Rehab Fund Scheme. Separately, the Cabinet today approved
accession to the protocol of amendment to the International
Convention on Simplification and Harmonisation of Customs
Procedures adopted by the World Customs Organisation in 1999.
