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Cabinet approves ordinances to amend Sebi Act, repeal UTI Act

The Union Cabinet on Monday decided to bring in ordinances for amending the Sebi Act and repealing the UTI Act.

The approval for the two ordinances was given by the Cabinet at its meeting chaired by Prime Minister Atal Bihari Vajpayee, Finance Minister Jaswant Singh told reporters after the meeting in New Delhi.

The repeal of UTI Act would enable the government to split the Unit Trust of India into two.

UTI-I will be the old protected UTI comprising of US-64 for which assured repurchase prices have been announced and return schemes assured.

The UTI-II (the new UTI) will comprise of all net asset value based schemes, which will have a professional chairman and board of trustees and will in course of time be privatised.

The government will meet its obligation annually to cover any deficit in UTI-I and it will be managed by the government appointed administrator and a team of advisors nominated by the government.

Amendment to the Sebi Act will provide the Securities and Exchange Board of India limited search and seizure powers for offences like market manipulation by companies.

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