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a stockbroker Rakesh G Mehta, were arrested in connection with the 'UTI scam'. UTI had purchased 40,000 shares of Cyberspace between September 25, 2000, and September 25, 2000 for about Rs 3.33 crore (Rs 33.3 million) from Rakesh Mehta when there were no buyers for the scrip. The market price was around Rs 830. The CBI said it was the conspiracy of these four people which resulted in the loss of Rs 32 crore (Rs 320 million). Subramanyam, Kapur and Basu had changed their stance on an investment advice of the equities research cell of UTI. The promoter of Cyberspace Infosys, Arvind Johari was arrested in connection with the case. The officals were paid Rs 50 lakh (Rs 5 million) by Cyberspace to promote its shares. He also received Rs 1.18 crore (Rs 11.8 million) from the company through a circuitous route for possible rigging the Cyberspace counter.
MUMBAI: Both the Union government and the Unit Trust of India (UTI) have failed to take any action against tainted UTI officials, as well as against corporates exposed by the Tarapore committee way back in January 2002. This is evident from the Action Taken Report (ATR) tabled before Parliament on May 10 about the JPC report regarding the 2001 stock scam. The final JPC report had recommended an enquiry of the secondary market transactions done by UTI in shares of 89 companies identified by the Tarapore committee. It had also recommended departmental action against UTI officials involved in Cyberspace scam. Moreover, Tarapore panel had exposed the deals behind the US-64 crisis and how banks had privy information regarding the ill-health of the scheme. However, in terms of action taken against these findings, both the government and UTI have failed to finalise any proceedings against the accused other than referring a few cases to the Advisory Board on Banking, Commercial and Financial Frauds, a pre-investigative body under the finance ministry. Some of the companies involved in these cases include Global Tele, DSQ Software, Essar Oil, Zee Telefilms, Essar Steel and HFCL. UTI chairman M Damodaran was unavailable for comment. After the Tarapore committee report unearthed the dubious deals between UTI officials and leading corporates, UTI ordered an audit of the investment decisions taken in 19 firms. But no action has been taken against these companies or against the concerned UTI officials. The UTI-1 administrator has informed the government that with reference to civil proceedings against exchairman PS Subramaniam and other former UTI officials, "UTI is seeking an external legal specialist and further action will be considered on their advice." On UTI's role in the Calcutta Stock Exchange payment crisis, the government has directed SEBI to intervene in the matter, since UTI has failed to initiate any action against its former ED BG Daga, who has been indicted in the JPC report.
LIC. Some of the funds have won famous awards.For more than two decades it remained the sole vehicle for investment in the capital market by the Indian citizens. SUUTI holds over 27% stake Axis Bank. Fresh talent was recruited from the private market. organizational structure was changed to focus on newly emerging investor and distributor groups and massive changes in investor services and funds management carried out. UTI has been able to benchmark its employee compensation to the best in the market. namely.Subsequently. This was further compounded by two factors. Mumbai . namely SBI. About 50% of the total IFAs in the industry work for UTI in distributing its products! India Posts. PSU Banks and all the large Private and Foreign Banks have started distributing UTI products. Bandra (East). It is present in over 450 districts of the country and has 100 branches called UTI Financial Centres or UFCs.when the new share-holders actually paid the consideration money to Government its market share had come down to close to 10%! A new board was constituted and a new management inducted. The total average Assets Under Management (AUM) for the month of June 2008 was Rs. The assets and liabilities of schemes where Government had to come out with a bail-out package were taken over directly by the Government in a new entity called Specified Undertaking of UTI. BOB and PNB. Systematic study of its problems role and functions was carried out with the help of a reputed international consultant. In order to distance Government from running a mutual fund the ownership was transferred to four institutions.!! Fearing a run on the institution and possible impact on the whole market Government came out with a rescue package and change of management in 2001. Once again UTI has emerged as a serious player in the industry. its flagship and largest scheme US 64 was sold and re-purchased not at intrinsic NAV but at artificial price and its Assured Return Schemes had promised returns as high as 18% over a period going up to two decades. 530 billion and it ranked fourth. each owning 25%. Unit Trust of India was created by the UTI Act passed by the Parliament in 1963.UTI maintained its pre-eminent place till 2001.1980s public sector banks were allowed to open mutual funds..UTI Mutual Fund was created as a SEBI registered fund like any other mutual fund. including the Best Infra Fund globally from Lipper. the UTI Act was repealed and the institution was bifurcated into two parts .It has over 70 schemes in domestic MF space and has the largest investor base of over 9 million in the whole industry. In mid. Gn Block.Sources said the regulator is expected to summon Daga for a hearing in this matter. The real vibrancy and competition in the MF industry came with the setting up of the Regulator SEBI and its laying down the MF Regulations in 1993. when a massive decline in the market indices and negative investor sentiments after Ketan Parekh scam created doubts about the capacity of UTI to meet its obligations to the investors. The UTI Asset Management Company has its registered office at: UTI Tower.400 051. Certain reforms like improving the salary from PSU levels and effecting a VRS were carried out UTI lost its market dominance rapidly and by end of 2005. SEBI has also ordered an investigation to ascertain any broker nexus among Stock Holding Corporation (SHCL) officials. Bandra ² Kurla Complex. SUUTI. In terms of equity AUM it ranked second and in . has introduced Performance Related Payouts and ESOPs.
In the area of alternate assets. UTI tied up with Shinsei Bank of Japan to run a large size India-centric portfolio for Japanese investors. It has branches in London.terms of Equity and Balanced Schemes AUM put together it ranked FIRST in the industry. It runs different portfolios for is HNI and Institutional clients. The JV has got its license and has started its operations. UTI has also launched a Private Equity Infrastructure Fund along with HSH Nord Bank of Germany and Shinsei Bank of Japan. Dubai and Bahrain. Besides running domestic MF Schemes UTI AMC is also a registered portfolio manager under the SEBI (Portfolio Managers) Regulations. UTI International Limited. This measure indicates its revenue.earning capacity and its financial strength. It has set up a Joint Venture with Shinsei Bank in Singapore. registered in Guernsey. It is also running a Sharia Compliant portfolio for its Offshore clients. UTI has a 100% subsidiary called UTI Ventures at Banglore This company runs two successful funds with large international investors being active participants. For its international operations UTI has set up its 100% subsidiary. . Channel Islands.
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