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Vassal is acting chief of UTI; PSS's resignation accepted

The Unit Trust of India's senior most executive director K G Vassal has been appointed acting head of the trouble-ridden mutual fund manager, a finance ministry spokeswoman said on Wednesday.

"He will be the acting chairman till a successor is found," the spokeswoman said.

Meanwhile, former Unit Trust of India chairman P S Subramanyam, who returned from Delhi on Tuesday night, said on Wednesday that the Union finance ministry has accepted his resignation with immediate effect.

Vassal will take the helm from P S Subramanyam, who resigned earlier on Wednesday amid a storm of protest provoked by the suspension of redemptions from UTI's largest fund due to declining performance.

The UTI chief had resigned in the face of severe criticism of his handling of UTI affairs, including the freeze of its flagship scheme US-64.

"I have put in my papers in the long term interest of the organisation," he said.

Subramanyam resigned in the wake of the mess in India's largest mutual fund after the announcement of suspension of its flagship scheme US-64 for 6 months which had send shock waves among the 20 million investors.

Vassal is currently in charge of the legal affairs section at UTI, the largest investor in Indian stocks.

UTI is also a big force in the Indian bond money and a lender in the call money market.

UTI's role in the multi-crore stock market scam in March would come up for scrutiny before the Joint Parliamentry Committee probing the scam which is to hold a two-day session in here next week.

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