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Parliament approves UTI`s bifurcation
New Delhi, Dec 03: Parliament today gave its approval for bifurcation of Unit Trust of India into two companies-- UTI-I and UTI-II -- with finance minister Jaswant Singh assuring Rajya Sabha that government would meet all commitments to investors.
New Delhi, Dec 03: Parliament today gave its approval
for bifurcation of Unit Trust of India into two companies
-- UTI-I and UTI-II -- with finance minister Jaswant Singh
assuring Rajya Sabha that government would meet all
commitments to investors.
The Unit Trust of India (Transfer of Undertaking and
Repeal) Bill 2002, already passed by the Lok Sabha, was
approved by the upper house by a voice vote after the mover of
the statutory resolution opposing the presidential ordinance
of October 29, Manmohan Singh (Congress), withdrew it and left
parties walked out in protest.
The minister said UTI-I would not be floating any new
scheme and all existing commitments would be met by the
government, while the UTI-II would be started as a SEBI
regulated, asset managed and market competing scheme.
He assured the house that there would be no retrenchment of UTI employees. All of them would be put on the UTI-II attendance register with an option that they could take six months to decide if they wanted to take voluntary retirement.
He assured the house that there would be no retrenchment of UTI employees. All of them would be put on the UTI-II attendance register with an option that they could take six months to decide if they wanted to take voluntary retirement.
Singh said the employees may also be considered for
absorption in the newly set up UTI bank in which the State
Bank and the Punjab National Bank would have investments.
While informing the house that the process has already
been started to punish the guilty responsible for mismanaging
UTI affairs, the minister said the matter has already been
referred to the central bureau of investigation and "nobody
will be spared if found guilty".
Bureau Report