(a) whether the Government have decided to convert the UTI into Mutual Fund by abolishing UTI Act, 1963;
(b) if so, the reasons therefor; and
(c) the concrete steps taken by the Government to
ensure security of amount invested by the investors in the various schemes of UTI ?
MINISTRY OF STATE IN THE MINISTRY OF FINANCE (BALASAHEB VIKHE PATIL)
(a) : No, Sir.
(b) : Does not arise.
(c) : UTI is an autonomous body created by an Act of
Parliament. As per the UTI Act, the Board of Trustees,
in discharging its functions, acts on business
principles, keeping in view the interests of unit
holders. All schemes floated by UTI after July 1994
are within the regulatory purview of the Securities
and Exchange Board of India (SEBI). Most of the
schemes launched prior to 1994 have also been
voluntarily subjected to supervision and inspection by
SEBI and compliance with its guidelines for mutual
funds. In July, 2000, as suggested by Government, UTI
set up a Committee on Corporate Positioning to review
its competitive and commercial positioning in the
light of financial sector reforms and developments in
the mutual fund industry.