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UTI payout freeze to be scrutinised, says Sinha

Union Finance Minister Yashwant Sinha said on Tuesday his ministry was scrutinising a decision by the country's largest mutual fund manager to freeze redemptions in its flagship fund for six months.

The Unit Trust of India said on Monday it was suspending till the year-end redemptions from US-64, its biggest fund.

"We normally let financial institutions function on their own. We have no desire to interfere in the day to day functioning, but the results that have come are no doubt distressing," Sinha told reporters outside his New Delhi office.

"So the ministry has already indicated that the entire issue will be closely scrutinised.

"We will go into all aspects of this, with regard especially to the issue of freezing sales and redemptions of US-64 for six months.

"And also the issue of strategic sales of the shares of the corporates that UTI holds.

"After examining the matter we will take necessary steps."

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