Decision On Uti & #8217;S Strategic Partner After Malegam Panel & #8217;S Report

The finance ministry will await the report of the Malegam committee before deciding on the issue of whether to go in for a strategic partner for Unit Trust of India.

This was stated by Rakesh Mohan, the advisor to finance minister, here today. He said the report of the committee on corporate repositioning of UTI has just been submitted to its chairman and will have to come to the ministry before any decision can be taken on it.

Speaking on the progress on demutualisation of the stock exchanges, the advisor said that there are a host of issues including that of valuation of the assets of the bourses, legal and historical angles and tax issues that need to be sorted out first. Joint secretary (capital markets) in finance ministry J Bhagwati said Securities and Exchange Board of India is in consultation with the stock exchanges as it is a complex issue. However, he added, that it has been decided that there is no need to amend the Securities Exchange Contracts Act for going through with demutualisation and a change in subordinate legislation is all that will be required.

Speaking about the possibility of hardening interest rates in the wake of the war in Afghanistan and its impact world wide, Rakesh Mohan said the current weakness in oil prices indicates that the situation is comfortable. He indicated that the government does not expect any hardening of interest rates but, added: