The government on Tuesday told the Rajya Sabha that Unit Trust of India, the country's largest mutual fund, is on a revival path and its units have started fetching a premium.

"UTI is well on the revival path and it is a healthy sign," Finance Minister Jaswant Singh said, replying to supplementaries during Question Hour.

The minister said its trading has started resulting in a premium on its units.

On the decline in investors' confidence in stock market, Singh attributed it to the Gulf crisis, the global downturn and drought.

He, however, said the recent developments in the Gulf have resulted in revival of the stock market.

Singh said the interest in stock market in rural sector has been limited as those investing from these areas are considered satoris (speculators).

He said the mindset in India is different and people preferred the debt market to the capital market.

The interest in stock market has also declined due to stock scams and said the government will implement recommendations of the Joint Parliamentary Committee on the stock market scam.

"We are committed to revive the interest and investors' confidence in capital market," he said.

Finance Minister Jaswant Singh replying to questions, however said of late revivalist tendencies are appearing as the uncertainty of the Iraq crisis is ending.

Answering to questions, the minister said the market capitalisation on the Bombay Stock Exchange fell from Rs 619,872.6 crore (Rs 6.19 trillion) on the Budget day to Rs 595,004.96 crore (Rs 5.95 trillion) on March 7,2003.

This was a fall of four per cent. Singh also said the revival of the market is an important activity which is part of reviving the economy as a whole.

He also said there were incidents of vanishing companies, for which the government has taken various steps.

Additional inputs: UNI