The sector remained abuzz with news revolving around UTI Mutual Fund.
It all started after T Rowe Price International, which owns 26 percent stake in UTI Mutual Fund approached the Bombay High Court seeking a direction to the Finance Ministry and capital market regulator Securities and Exchange Baird of India to prevent certain PSUs from stalling the company’s bid to come up with an initial public offer (IPO).
In its petition, T Rowe Price had claimed that four public sector undertakings — State Bank of India, Life Insurance Corporation, Punjab National Bank and Bank of Baroda — were trying to stall the company’s proposed IPO.
The petition had also sought implementation of SEBI’s rules and regulations and to extend the term of Puri for another year to see the IPO through.
According to T Rowe Price, the four PSUs, which together own 74 percent in UTI AMC, are not in favour of granting Puri a second term.
The petition had also sought a direction to ask the four domestic shareholders to bring down their holding in the fund house to 10 percent each from the present 18.50 percent.
Also, as domestic investors locked horns with a foreign shareholder UTI Mutual Fund’s Managing Director Leo Puri said he does not want an extension as long as there are differences within the board.
On Aug 13, the petition was placed in front of the court where Bombay High Court adjourned the hearing of the petition filed by T Rowe Price International to August 28 after it sought more time saying that it is in talks with the government for an out-of-court settlement of the matter.
Leo Puri resigned as MD and CEO of UTI Mutual Fund as his five-year contract ended on August 13.
Post his resignation, the board of UTI Asset Management Company appointed Group President and Chief Finance Officer Imtaiyazur Rahman as acting Chief Executive Officer with effect from Aug 14.