The board of the Unit Trust of India on Monday formed a three-member sub-group to study the Joint Parliamentary Committee's report on UTI and suggest an action plan in about a month's time.
"The trustees considered the JPC report and formed the sub-group, M R Mayya, S Bhojani and P N Shah, who will study the report, including recommendations, and present an action plan to be presented at the next board meeting," UTI sources said after a meeting in Mumbai.
JPC, in its report, said problems faced by the country's largest fund manager were concentration of power in chairman's hand without adequate checks and balances to prevent misuse.
Industrial Development Bank of India, a principal contributor to UTI corpus, neglected its duties, JPC said.
The UTI management and the government were unwilling to amend regulations to restructure the institution and bring it under purview of Securities and Exchange Board of India, it said.
Trustees gave in-principle nod to convert its mastershare scheme into an open ended fund and now we would approach Securities and Exchange Board of India to convert scheme into open-ended fund, they added.
As on December 12, the fund size is Rs 1,020 crore (Rs 10.20 billion) and the net asset value was Rs 11.18 per unit. In October 2002, the fund made an income distribution at the rate of 10 per cent to its unitholders.
Mastershare was launched in September 1986 to provide capital appreciation and regular income distribution through equity and equity and equity related investments.
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