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PHDCCI welcomes UTI's bailout package

Welcoming the bailout package for the beleaguered Unit Trust of India, Arun Kumar, president of PHD Chamber of Commerce and Industry said it will definitely send positive signals to the otherwise hapless small investors who had put their hard-earned money in the country's largest mutual fund.

The government should, however, put in place an efficient mechanism to ensure that shortfall in schemes and negative reserves does not get repeated, he added.

He said that the UTI Act should have been repealed long ago and the schemes under UTI should have been brought under Securities and Exchange Board of India.

Making the two entities -- UTI-I and UTI-II -- Sebi compliant will help UTI improve its image in times to come.

Regarding tax incentives proposed under US-64, Kapur was hopeful that suitable amendments would be made in the I-T Act so that the tax benefits available under the UTI Act would also continue.

UNI

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