The Y H Malegam-Committee on corporate repositioning of Unit Trust of India (UTI) has recommended that a strategic partner be allowed to hold a majority stake of 60 per cent in the sponsoring company. The strategic partner should be a globally reputed player and need not be an Indian entity.
The committee, which has said that UTI should adhere to Sebi regulations by putting in place a sponsor, a trustee company and an asset management company (AMC), has recommended that the trustee be capitalised at Rs 5 crore. It should be incorporated as a wholly-owned subsidiary of the sponsoring company.
UTI, as part of the restructuring exercise, should convert itself into an asset management company, the Malegam committee has recommended. The AMC should be capitalised at Rs 1,000 crore keeping in mind UTI
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