The Malegam committee has said that the asset management company (AMC) of the Unit Trust of India, in its restructured avatar, should compensate Unit Scheme-64 for taking over its infrastructure and organisation by issue of bonds. The quantum of bonds would be decided when UTI is converted into an AMC.
The panel, which submitted the report on corporate repositioning of UTI to the joint parliamentary committee (JPC) probing the stock market scam, has recommended that after UTI converts itself into an AMC, the existing infrastructure and organisation of UTI which presently form part of US-64 would become the infrastructure and organisation of the new AMC.
Hence, US-64 should be compensated through the issue of bonds carrying a rate of return which is linked to the market rates. The redemption terms should be determined taking into account the AMC