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UTI should be barred from investing in shares placement: BJP

The Bharatiya Janata Party on Saturday demanded that the crisis ridden Unit Trust of India be barred from investing in private placement of shares at prices higher than the prevailing market prices besides a thorough probe into the nexus between corporate sector and the country's largest mutual fund.

The economic resolution adopted on the penultimate day of the party's three-day National Executive sought a thorough probe into all investment decisions of the UTI in the last ten years.

The resolution, which had to be re-drafted in the face of widespread criticism, appealed to the government to take immediate corrective steps including strict vigilance on functioning of the entire financial system including institutions like IDBI and LIC.

It suggested that Securities and Exchange Board of India be empowered along the lines of Securities Exchange Commission of USA, so that transactions of institutions like UTI are more transparent and accountable.

It said as UTI had been playing a pivotal role with investment of over Rs 600 billion mobilised from small investors through its various schemes including US-64, these steps were necessary to restore the shaken confidence of around 20 million small investors.

In a brief reply to concerns expressed by party members on the UTI fiasco, Finance Minister Yashwant Sinha said a probe was already on and those found guilty would not be spared, party spokesman Sunil Shastri told reporters.

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