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Fact-finding exercise to start on UTI: Patil

The government will soon start a 'fact-finding' exercise into the UTI affair and moves are afoot to explore whether the country's largest mutual fund could be privatised.

"Some sort of fact-finding" exercise would be carried out and the picture would become clear soon, Union Minister of State for Finance Balasaheb Vikhe-Patil said expressing government's 'slight surprise' over UTI's declaration on Monday, including a freeze of its flagship scheme US-64.

UTI has been set up by an act of Parliament and 'strong steps' were needed to protect the interest of investors, particularly small, Patil said stressing the need for restructuring the company.

After all the facts come out, he said: "The government may think of restructure. All over the world mutual funds are private companies."

Patil was non-committal on whether a bailout package was being considered for UTI.

Asked if the government would amend the UTI Act to privatise the country's largest mutual fund as part of the revamp, Patil said: "I do not know. But I personally think slowly it should be in private system. Various kinds of options are in the dialogue process."

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