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MoF considering UTI's suggestions on Malegam panel report: Sinha

Finance Minister Yashwant Sinha has said the government is considering Unit Trust of India's suggestions on the Malegam Committee report, which recommended induction of a strategic partner with 60 per cent stake in the country's biggest mutual fund.

"I believe that the UTI board has considered it (Malegam Committee report) and they have sent some recommendations to the ministry. That is being considered by us," Sinha told BBC.

Assuring the government's support to UTI, he said, "We had said in July when the UTI came up with this scheme (US-64), that the government will back UTI. We stand by that commitment."

"We must exercise ownership rights and obligations. The ownership obligation is that if there is a problem, we should step in and solve the problem," he told BBC World's India Business Report, scheduled for telecast Sunday night.

The minister said there was no sign of a 'run' on reserves after US-64 was opened for sale of upto 3,000 units per account-holder from August.

"I must confess that in spite of the scare people held on to their units because they still have some degree of confidence (in UTI)," Sinha said.

US-64 units were priced in accordance to its net asset value from January although small investors have the freedom to redeem up to 5,000 units at administered prices.

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