The Unit Trust of India (UTI) is expected to pay higher premium than other mutual funds for obtaining insurance cover against third-party losses.
Last week, the Securities and Exchange Board of India (Sebi) made it mandatory for mutual funds to take cover against losses accruing to third parties, such as investors, due to errors and omissions of its directors, employees, trustees, custodians, registrars and transfer agents.
With the Sebi diktat, insurance companies are busy queuing up before mutual funds eager to sell their policies. Officials with state-owned insurance firms said various parameters would be taken into account while providing cover to an asset management company (AMC), its directors and employers.
But in the UTI
