UTI AMC now 'private' mutual fund

UTI AMC today became a private company, as its four sponsors paid
Rs 1,236.95 crore to the government.

"UTI AMC will run as a private mutual fund competing with rest of the industry under the regulations and supervision of Sebi," finance minister P Chidambaram said.

Chairmen of four sponsors -- A K Shukla, Life Insurance Corporation, A K Purwar, State Bank of India, S C Gupta, Punjab National Bank and A K Khandelwal, Bank of Baroda handed over cheques worth Rs 309 crore each to Chidambaram.

The sponsors will own 25% stake each in the mutual fund that manages
Rs 25,000 crore assets of 67 lakh investors.

Chidambaram added: "Today is the culmination of government's efforts to restructure UTI."

UTI was set up to function as a vehicle for mobilising domestic savings needed for the growth of Indian economy and channelising the benefits of economic growth to households.

Unit Trust of India was split into two entities - UTI-I (or specified undertaking of UTI) and UTI AMC after the fiasco of its flagship scheme US-64 in 2001.