Takeover Norms For Mfs Likely

The Securities and Exchange Board of India (Sebi) is looking at the possibility of expanding the scope of the takeover code to include changes in the managements of mutual funds as well.

Since April 2001, there has been a spate of takeovers in the mutual fund industry, either in the form of outright acquisition or of a foreign partner divesting its stake in an asset management venture.

While no firm decision has been taken, Sebi is learned to be planning to take a close look at the mutual fund industry and putting in place norms for acquisitions. The idea is to give unitholders a better deal than what they are being offered now and to bring them on a par with shareholders in companies. The trigger is possibly the proposed privatisation of UTI-II, comprising net asset value-based schemes.

While Sebi