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This article is more than 2 year old.

SBI, LIC may seek FinMin’s help after Sebi denies more time to cut UTI MF stake: report

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State Bank of India (SBI) and Life Insurance Corp (LIC), the two domestic shareholders of UTI Asset Management, have requested for more time from the Sebi to divest their stake in the asset management company but the market regulator has declined them, The Economic Times reported.

SBI, LIC may seek FinMin’s help after Sebi denies more time to cut UTI MF stake: report
State Bank of India (SBI) and Life Insurance Corp (LIC), the two domestic shareholders of UTI Asset Management, have requested for more time from the Sebi to divest their stake in the asset management company but the market regulator has declined them, The Economic Times reported.
“Both the shareholders have placed their request before Sebi and also met the regulator regarding this issue. But Sebi has informally told them that it is not inclined to give any extension,” a person familiar with the development told the newspaper.
After the Sebi denied their request, the two state-owned firms are likely to seek the intervention of the finance ministry, the report said citing people with knowledge of the matter.
The regulator, in March last year, had introduced a cross-holding limit in mutual funds to put an end to the potential conflicts of interest.
As per the norm, a shareholder with 10 percent or more in an asset management company in India cannot hold a similar-sized stake in another fund house and would also have to give up board seats.
The two shareholders at UTI AMC —SBI and LIC — hold 18.5 percent each. Punjab National Bank and Bank of Baroda also hold 18.5 percent stake each and the rule applies to all four.
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