The Hindu Business Line : Norms for MF investments abroad may be relaxed

THE existing policy on equity investments by Indian mutual funds in overseas market is likely to be liberalised soon, said the newly appointed Chief Executive Officer (CEO) of UTI Mutual Fund, Mr U.K. Sinha.

Addressing the newspersons on assuming office here, Mr Sinha, an IAS officer, who was the Joint Secretary, Capital Markets, Ministry of Finance, prior to his two-year deputation at UTI, said that the Government, along with the Securities and Exchange Board of India and the Reserve Bank of India, is currently reviewing the policy.

Under the present norms, the entire exposure of the mutual fund industry in overseas securities is restricted to $1 billion. Moreover, investment is permitted only in equities of companies that have a subsidiary in India in which the parent company holds a minimum stake of 10 per cent.

Terming the existing policy as "restrictive," Mr Sinha said that as and when it is liberalised UTI MF would like to begin investing abroad in a big way. He pointed out that the overall overseas exposure of Indian mutual funds was miniscule due to the limitations imposed.

On his future plans, Mr Sinha said that besides aiming for a major increase of the assets under management, he could also be looking at taking over other mutual funds at a later stage. "I don't rule it (taking over other funds) out. There are advantages of larger size with increased efficiency. However, inorganic growth would not be one of my immediate priorities," he said.

Mr Sinha said that UTI MF would also enlarge its overseas presence to source overseas money into the Indian capital market. "UTI will be taken abroad in a big way soon starting with new offices in Singapore and Oman that are coming up in a few months," he said. The fund house currently has three overseas offices in London, Dubai and Bahrain.

Mr Sinha said that he would also like UTI MF to branch out into new areas such as management of pension funds. "We fulfil all the necessary qualifications for a pension fund manager. We will certainly pitch for one of the PFM slots," he said.

Mr Sinha said that going forward he would try to restore the confidence of the investment community that had been somewhat eroded after the fund had fallen into bad times in the recent past. "My priority would be to regain the trust we had enjoyed in the past. We have already covered a lot of ground. I am sure that investors will come to us in droves in the days ahead." He added that the fund would follow the three Ts - trust, transparency and technology.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Northeast monsoon active again

US dumping duty on Indian shrimps to stay

Inflation slows on cheaper food, energy

Norms for MF investments abroad may be relaxed — `UTI MF may scout for takeovers'

ONGC decides against special dividend — May consider interim dividend later

Cabinet okays setting up of National Investment Fund — UTI MF keen on managing it

SPV for infrastructure funding approved — Govt to guarantee borrowing up to Rs 10,000 cr

CCEA clears national steel policy — 100-mt production by 2019-20 targeted

ATI Tech develops faster graphics processors

IBM chief meets PM